Binance will temporarily halt USD bank transfers

• Binance will suspend USD bank transfers as soon as this week
• The platform made the statement days after its banking partner put a limit on the USD transfer amount

Binance, the world’s largest crypto exchange by market cap, is reportedly halting USD bank transfers. The halt will last for a few weeks till the crypto exchange partners with a new banking agency, as per a Twitter post by DB Newswire. Additionally, the USD services will halt on February 8, 2023, from 22:00 UTC, read an email from Binance. The notice further said,

“After this time, the USD withdrawal function will be temporarily disabled and deposits into Binance USD accounts will be rejected and returned to sender. Importantly, all balances and other platform functions are unimpacted. We are working to resolve this administrative issue as soon as possible”

Binance facing problems with banking service providers

Notably, the update comes days after the crypto exchange revealed that its SWIFT banking partner had set a limit to USD transfers. The unnamed banking partner banned transfers below $100k via its SWIFT payment system, affecting users with USD accounts. This service disruption went into effect on February 1, 2023. Nonetheless, this disruption does not impact other services or corporate accounts.

Moreover, adding to the string of woes is the UK bank- Nationwide. The banking service provider announced that has restricted card payments to Binance. And, it remains unclear how much longer the bank will continue to hold this position. Nationwide, however, has allowed users to withdraw funds on Binance via their Nationwide account.

In addition, Nationwide stated that the decision was influenced by increasing scams related to crypto and regulatory uncertainty, in a Tweet. Meanwhile, a blog post on the same stated the move follows similar action taken by other service providers. The post further said,

“Even with your direct consent in person or by telephone, we can’t remove the restriction and allow you to make a payment to Binance.”

Binance unveils tool for taxes

Subsequently, the crypto exchange unveiled a new tool for tax purposes – Binance Tax. The free tool is currently available for users in Canada and France and it supports 100,000 transactions. A blog post on the same read,

“We understand that many of our users, including experienced traders, find filing their taxes challenging and time-consuming because of that. Binance Tax helps you stay up-to-date with your crypto-related tax liabilities, offering a number of tangible benefits. “