Binance will suspend US dollar transfers starting Wednesday, reportedly causing millions to flow to rival exchanges

• Binance will reportedly stop transferring US dollars on its exchanges starting Wednesday.

• The exchange did not provide a reason for the suspension, which does not impact U.S.-based customers.

• According to CNBC, the announcement may have resulted in millions of dollar-pegged stablecoins flowing out of the exchange.

Binance, the world’s largest crypto exchange, will suspend US dollar transfers starting Wednesday, and the move is reportedly leading to millions of dollars in outflows from the platform to rivals.

A company spokesman told multiple media outlets on Monday, including CNBC and Bloomberg, that dollar deposits and withdrawals would be suspended indefinitely, without providing a reason for the move. Transfers in other fiat currencies such as the euro remained unaffected.

“We are temporarily suspending USD bank transfers starting February 8,” the Binance spokesperson told CNBC. “Affected customers will be notified directly.”

The company told the publication: “0.01% of our monthly active users use USD bank transfers,” adding that “we are working hard to restart the service as quickly as possible.”

The spokesperson told Bloomberg that other methods of transferring cryptocurrency via credit card, Google Pay and Apple Pay, are also unaffected.

In a tweetBinance US, the group’s US arm, said it was not affected by the restriction, noting that the suspension would only affect dollars held by non-US customers.

According to data provided to CNBC by Arkham Intelligence, the announcement resulted in millions of US-pegged stablecoins such as Tether and USD Coin flowing from Binance’s crypto wallet to rival exchanges.

“We are still mostly positive on net deposits,” the spokesperson told CNBC in response to reports of departures. “Outflows increase whenever prices begin to stabilize after a bullish market swing, as we saw last week when some users took profits.”

Binance did not immediately respond to Insider’s request for comment.

Read the original article on Business Insider