Binance.US USD Services Restoration: Key Details

Binance.US has announced plans to reintroduce USD services in early 2025, signaling a major operational shift after a prolonged period of restricted banking access.

The move, which comes amid growing optimism about potential changes to US crypto policies, marks a pivotal moment for the exchange following a tumultuous year.

Binance.US To Resume USD Services in 2025

A recent Binance.US blog announced plans to reinstate USD services in early January. Interim CEO Norman Reed highlighted the significance of this move, describing fiat services as the “top-requested and most anticipated” feature by users.

“While I can’t provide a definitive launch date yet, let me be clear: It is not a matter of if, but when,” Reed said.

The platform operates as a separate entity from Binance Exchange under BAM Trading Services to comply with US regulations. It halted fiat trading in 2023, a decision that came amid civil claims from the US SEC (Securities and Exchange Commission).

This lawsuit and allegations of financial misconduct culminated in the suspension of dollar deposits and withdrawals. Since then, Binance.US has faced intense regulatory scrutiny and limited banking capabilities.

Despite this, the exchange has maintained steady operations, supporting over 160 cryptocurrencies and offering staking for more than 20 assets. According to Reed, the staking service outpaces competitors.

Nevertheless, he attributed much of the regulatory pressure to a deliberate effort by the outgoing administration to restrict crypto firms’ access to banking services, otherwise termed “Operation Choke Point 2.0.”

This issue gained attention after Coinbase’s Chief Legal Officer Paul Grewal highlighted letters between the Federal Deposit Insurance Corporation (FDIC) and affiliate banks. It suggested intentional debanking of crypto companies.

However, having “survived” 17 months of SEC scrutiny, Reed expressed confidence in Binance.US’s compliance record. Of note is that the scrutiny included extensive depositions and document requests.

“Now that we’ve survived, our goal is to help crypto thrive and empower all Americans with freedom of choice,” he said.

Binance Global Remains Cautious

Looking forward, Binance.US is working on new partnerships to expand custody services and wallet solutions alongside the restoration of fiat capabilities. The move could potentially reinvigorate the exchange’s user base and restore confidence among American investors.

While Binance.US is planning its USD service restoration, Binance’s global operations remain cautious about re-entering the US market. Binance CEO Richard Teng recently described such discussions as “premature” during an interview with Bloomberg.

Teng noted that Binance’s primary focus is on global expansion and attracting institutional investors, sovereign wealth funds, and high-net-worth individuals to the crypto space.

“Whether we re-enter the US market, I think that’s a premature discussion,” he said.

These comments come following Binance’s $4.3 billion settlement with the Department of Justice (DoJ) over allegations of sanctions violations, money laundering, and operating as an unlicensed money transmitter. Despite the challenges, Teng reiterated the company’s commitment to compliance.

“I believe that compliance is the way to go. Given that regulations are going to be much clearer throughout the world, we can invest very heavily in compliance. I want to make complete compliance a competitive advantage,” he said.

However, broader questions remain about the regulatory environment in the US and how it could shape crypto firms’ future as they operate within the country. Following Donald Trump’s win, however, there is potential for policy shifts.

Binance.US’s ability to re-establish its USD services successfully could serve as a litmus test for the viability of crypto platforms within the US regulatory space.