Binance.US No Longer US FDIC Insured
“Digital Assets are not legal tender, are not backed by any government, and accounts and value balances are not subject to protections or insurance provided by the FDIC or the Securities Investor Protection Corporation (SIPC).”
In addition, users must convert their fiat U.S. dollars in accounts to stablecoins or other digital assets to withdraw their crypto holdings. Binance.US’ accounts were earlier insured up to $250,000 per person.
Custodial accounts at exchanges such as Coinbase have FDIC protection per-depositor coverage limit of $250,000 per individual, as per terms of service. However, the availability of pass-through FDIC insurance is “contingent upon Coinbase having correct information about you as a customer.”
Binance Facing Regulatory Heat
The exchange is facing a crackdown by the regulators in the U.S. led by the Securities and Exchange Commission. Binance CEO “CZ” has criticized the regulators for their actions against Binance and Binance.US.
Meanwhile, the SEC argues that Binance.US failed to cooperate on the consent order in the lawsuit. The SEC argues BAM has only produced approximately 382 and refuses to provide its position on producing the remaining documents as requested by the agency under the consent order. Binance.US said the SEC has made more requests since the September 18 hearing, which are unreasonable.
The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.