Crypto: Are Upcoming Binance Changes Beneficial to USDC?

In the crypto market, the ups and downs never end. Early on December 13, crypto exchange Binance announced a temporary suspension of USDC stablecoin withdrawals. A situation which very quickly challenged the crypto community, but which did not last long either. Sure enough, USDC withdrawals are once again available on Binance.

After a brief suspension, USDC stablecoin withdrawals are back in operation on Binance

Suspension of USDC withdrawals: Binance explains

On December 13, Binance announced on Twitter the suspension of withdrawals of USDC stablecoins on its crypto exchange platform. More concretely, the withdrawal problems arose early in the day on December 13. They only lasted a few hours since USDC withdrawal operations are available again.

To reassure crypto users, the CEO of Binance mentioned two main reasons:

  • USDC token exchanges
  • Insufficient USDC reserves

Changpeng Zhao indeed reported large USDC withdrawals from his account Twitter. “The channel to switch from PAX/BUSD to USDC requires going through a bank in NY in USD. The banks won’t be open for a few hours. We anticipate that the situation will be restored when the banks open. he explained. Promise kept!

New withdrawal record

According to Changpeng Zhao, the suspension of USDC withdrawals was only a “temporary” measure in response to the massive withdrawals recorded on the platform. Over the last 24 hours, Binance has posted an unprecedented withdrawal record. Nansen, a reputable blockchain data platform, reports around $1.14 billion in net outflows.

For the CEO of Binance and his collaborators, this is a normal and usual situation. “We saw withdrawals today. We have seen this before. Some days we have net withdrawals. Some days we have net deposits. As usual for us. ” did he declare.

Yes ! Large withdrawals on Binance are nothing new for crypto users. That being said, the situation is not trivial. For some, it comes after the publication of an important information: Binance would be under a criminal charge for money laundering. It released its proof of reserves report earlier in the week. Unfortunately, this document still raises doubts.

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