After 18 months of removal, the United States organ of Binance is set to resume US dollar deposits and withdrawals for users. Binance.US made the announcement on Wednesday via an official blog post.
According to the statement, the exchange is set to resume US dollar services including deposits and withdrawals on February 18, 2025. Binance.US stated that the options are now available through bank transfer (ACH).
In addition, Binance.US disclosed that it will gradually roll out the new option for eligible users. More so, the cryptocurrency exchange revealed the launching of new 10 USD trading pairs.
Furthermore, Binance.US also said users can now seamlessly convert their crypto holdings to USD. As part of the initiative, the exchange established that users can now convert USD balances below $20 to some selected cryptocurrencies.
The development underlines a gradual return of Binance.US to the US crypto market after a legal tussle with regulators forced the exchange out in 2023. During the Biden administration, the cryptocurrency market suffered hugely due to a lack of regulatory clarity.
The disharmony resulted in various lawsuits from US regulators against the cryptocurrency sector. Between 2021 to 2023, the crackdown on cryptocurrency exchange by the US SEC alone cost the industry legal fees worth $426 million.
Insight to Binance tussle with US SEC
Recall that in June 2023, the United States Securities and Exchange Commission (SEC) filed a lawsuit against Binance. The regulator accused Binance of failing to register its US subsidiary as an exchange.
Also, in the lawsuit, the SEC alleged that former Binance CEO, Changpeng Zhao mismanaged billions in user deposits. In response to the lawsuit, Binance.US suspended the US dollar deposit option from its offerings.
Thereafter, the exchange expressed displeasure at the antics of the SEC, stating it may take action. Consequently, in October 2023, Binance.US indicated that it would no longer support USD, forcing the platform to take a new posture as a “crypto-only” exchange.
The saga dragged on till the firm eventually paid a massive $4.3 billion fine. In November 2023, the cryptocurrency exchange agreed to pay a $4.3 billion settlement to the Treasury Department after violating Anti-Money Laundering regulations.
As part of the agreement deal, Changpeng Zhao stepped down as the CEO, leaving Richard Teng to take over. Similarly, the exchange also agreed to completely quit the US market.