Binance has suspended deposits and withdrawals to U.S. dollar accounts

Cryptocurrency exchange Binance has suspended deposit and withdrawal of funds in U.S. dollars without explanation.

"We are temporarily suspending bank transfers in U.S. dollars from February 8," said a Binance spokesperson.

All customers have already been notified of the decision. The exchange notes that transfers in dollars are used by 0.01% of active users each month. Its representatives added that they "are making every effort to resume services as soon as possible".

However, the suspension of transactions did not affect Binance US, a division of the company that is regulated by the Treasury Department's Financial Crimes Enforcement Network. Thus, the move applies only to customers outside the U.S. who are transferring money to or from dollar-denominated accounts.

According to Arkham Intelligence, there was a sharp spike in outflows from Binance cryptocurrency wallets following the announcement. The net outflow for the day was more than $172 million. Crypto-assets on the exchange reached $42.2 billion.

Binance said customers can still use other fiat currencies or payment methods to purchase cryptocurrency. In addition, the exchange will announce a new partnership in the next two weeks.

In December, Binance suspended the ability to withdraw USDC Stablecoins from customer accounts but resumed it hours later.