Crypto exchange Binance temporarily halts USDC stablecoin withdrawals

Binance is the world’s largest cryptocurrency exchange by trading volume.

Jakub Porzycki | Nerfoto | Getty Images

Binance, the world’s largest cryptocurrency exchange, announced Tuesday that it will suspend withdrawals of its USDC stablecoin while conducting a “token swap.”

The move comes as investors grow concerned about the stability of Binance following the collapse of rival exchange FTX and reports of a potential criminal investigation from the US government.

Binance said it had “temporarily suspended” USDC withdrawals while conducting a “token swap.” This includes exchanging one cryptocurrency for another without the need for fiat currency.

Binance CEO Changpeng Zhao tweeted on Tuesday that the exchange is seeing an increase in USDC withdrawals. USD.

USDC is used to trade various cryptocurrencies without the need for investors to convert back to US dollars. If a trader is withdrawing his USDC from Binance, it may move to another platform.

Zhao said the conversion of the stablecoin known as PAX to USDC, as well as Binance’s own token BUSD, would have to go through a New York-based bank that has yet to open.

A token swap could be a quick way for Binance to get more USDC while banks are closed to resume withdrawals.

Zhao said users can continue to withdraw BUSD and other stablecoins, including Tether.

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