Binance plans to suspend U.S. dollar transfers using bank accounts

Binance, the world's largest cryptocurrency exchange, said it's temporarily suspending deposits and withdrawals of U.S. dollars using bank accounts, and will work to restart the service soon.

The suspension will start Wednesday, according to a Binance spokesperson. No reason was given for the suspension. Bank transfers using other fiat currencies, such as euros, are unaffected, the representative said.

Christopher Pike/Bloomberg

"It's worth noting that only 0.01% of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible," the spokesperson said in an emailed statement. Other methods of buying and selling crypto on Binance, such as via credit card, Google Pay and Apple Pay, "remain unaffected."

Crypto companies have had difficulties finding banking partners to facilitate the sending of money to buy and sell digital assets. Following the collapse of FTX, banks have been warned by federal regulators of the risks of doing business with crypto firms.

Last month, Binance said its banking partner Signature Bank would handle user transactions only if they're for more than $100,000 as the lender decreases its exposure to digital-asset markets. The New York-based bank said in December it intended to cut as much as $10 billion in deposits from crypto clients.

A spokesperson for Signature said Monday that the bank can't comment on client-related matters.