Binance, In order to remove USD from their accounts, US users "may convert" their USD funds into stablecoins or other digital assets, according to the company.

The terms of service for cryptocurrency exchange Binance.US have been modified, and the platform no longer supports direct withdrawals in dollars.

On October 16, Binance.US modified its terms of service, drastically changing the part referencing the BAM Fiat Wallet," which alludes to Binance US services relating to USD custody.

Users "may convert" their USD cash to stablecoins or other digital assets, according to Binance.US's revised rules, in order to withdraw USD funds from their accounts.

Some Bitcoin supporters confirmed the terms of service change on Binance.US on X (previously Twitter). Binance confiscates USD. Don't worry, you may purchase shitcoins or Tethers that were printed out of thin air, one crypto watcher on X commented.

Read on twitter

Binance.US emphasised that digital assets are not qualified for insurance protections by the Federal Deposit Insurance Corporation (FDIC), similar to prior terms of service changes.

Binance.US stated in an update on May 5, 2023 that "in the event we terminate our relationship with a USD custodian and we are unable to find another USD custodian, we will provide notice and time to withdraw your USD deposits." The business added:

Stablecoin digital assets will be created and sent to your digital assets account for any U.S. dollar deposits that are not withdrawn by the time specified in the notice.

The most recent revisions to Binance.US' terms of service are noticeably different from one that was published in May 2023.

The page said that BAM, the company that operates Binance.US, is not a bank and is not a member of the FDIC, but that it has "worked with the USD custodians" to ensure that U.S. dollar deposits are held by USD custodians in omnibus accounts at FDIC-insured institutions. This material has now been removed.

BAM intends for the funds to be eligible for FDIC insurance coverage up to a maximum of $250,000 per eligible individual, which would only be applicable if a compliance by BAM and the USD cust.

Your accounts with the bank and the fiat may be combined in order to determine if you qualify for FDIC deposit insurance in the event that the bank fails.

Failure of BAM or misconduct by any BAM employee is not covered by FDIC insurance.
Binance.US did not answer right away when Cointelegraph asked for comment.

There is yet another instance of Binance in the press.As the exchange has stopped several USD activities over the past year, the US has struggled to maintain its fiat on ramps and off ramps.

Binance.US stopped accepting USD deposits in June 2023 and informed its users of the impending suspension of fiat withdrawal channels.

Later, the company claimed to have fixed the USD withdrawal problems, but also issued a warning that the fix might only be temporary.

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