Binance.US has restored U.S. dollar deposit and withdrawal capabilities after a 16-month hiatus, announcing new banking partnerships that reconnect the exchange to the federal payments system. The move marks a significant milestone in the platform’s recovery from the regulatory crackdown that severed its banking access in June 2023.
Customers can now fund accounts via ACH and wire transfer through newly established relationships with Cross River Bank and Customers Bank, both FDIC-insured institutions with existing fintech partnerships. The exchange also reintroduced USD trading pairs for bitcoin, ether, and 12 other major cryptocurrencies.
“Restoring fiat on-ramps is the single most important step in rebuilding trust with our U.S. users,” said Norman Reed, CEO of Binance.US. “We’ve spent the past year strengthening our compliance infrastructure, enhancing our AML programs, and working constructively with regulators. Today’s announcement reflects that progress.”
The exchange lost its banking partners in June 2023 following the SEC’s enforcement action alleging securities law violations, commingling of customer funds, and misleading statements about market surveillance capabilities. The lawsuit forced Binance.US to suspend dollar deposits, effectively cutting off retail access and causing trading volume to plummet over 90%.
Since then, the platform has undergone significant restructuring. Former Binance CEO Changpeng Zhao pleaded guilty to anti-money laundering violations in November 2023 and stepped down. Binance.US appointed a new board of directors with traditional finance and regulatory experience, hired a former OCC examiner as chief compliance officer, and implemented real-time transaction monitoring through Chainalysis and TRM Labs.
The banking restoration coincides with the broader political shift in Washington. The incoming Trump administration’s pro-crypto stance, including the nomination of Paul Atkins to lead the SEC, has encouraged regional banks to re-engage with digital asset firms. Cross River Bank and Customers Bank both cited “regulatory clarity” as a factor in their decision to partner with Binance.US.
Trading volume on Binance.US surged 340% in the first hour after the announcement, with BTC/USD and ETH/USD pairs leading activity. The exchange’s market share among U.S. spot platforms, which had dwindled to under 2%, showed early signs of recovery. However, Coinbase and Kraken still dominate with combined volume exceeding 85% of the domestic market.
Industry observers note that Binance.US faces an uphill battle to regain its former position. “They’ve solved the banking problem, but the trust deficit remains,” said Kaiko Research analyst Clara Medalie. “Retail users who migrated to Coinbase or Kraken during the outage have little incentive to return unless Binance.US offers meaningfully better pricing or product selection.”
The SEC’s case against Binance.US remains pending, though legal analysts expect a settlement under the Atkins-led commission. The exchange has set aside $1.3 billion in reserves for potential fines and restitution. Meanwhile, Binance.US continues to operate under a consent order with FinCEN requiring enhanced reporting and independent audits.
Source: The Crypto Investigator
