![]() ![]() ![]() The conference is scheduled from March 28-30 and will feature live panels, fireside chats, and exclusive programming over the three days. “The feature of liquid dollar digital currencies should be that they are redeemable on demand, and at par at all times, even during conditions of stress,” Disparte added.RIYADH: Binance Blockchain Week is making its first physical return in Dubai after COVID-19, featuring some of the best names in the industry, the most daring innovators and the most significant technological advances of the century. USDC, issued by US-based firm Circle, is the world’s second-biggest stablecoin, and is used by investors to trade in and out of different cryptocurrencies without having to convert them to US dollars.ĭante Disparte, Circle’s chief strategy officer and head of global policy, said that there will be “challenges” relating to liquidity and redemptions when assets are swapped in the way Binance has done with USDC. We expect the situation will be restored when the banks open.” “The banks are not open for another few hours. Zhao said on Tuesday swapping USDC with two other tokens – Paxos Standard and Binance USD – requires using traditional dollars at a bank in New York. “On USDC, we have seen an increase in withdrawals,” Binance’s Zhao tweeted at around 08:20 GMT.īinance said in September it would automatically convert user balances and new deposits of USD Coin and two other stablecoins into its own stablecoin, Binance USD. Halted withdrawalsĮarlier on Tuesday, Binance halted withdrawals of USDC, citing a “token swap” – where digital token holders exchange their crypto-coins, typically over different blockchains. Splits between US Department of Justice prosecutors are delaying the conclusion of a long-running criminal investigation focused on Binance’s compliance with US anti-money laundering laws and sanctions, Reuters reported on Monday. “User assets at Binance are all backed 1:1 and Binance’s capital structure is debt free,” the person said.Īsked whether Binance had enough USDC to meet USDC withdrawal requests, the person added it may need to move funds to online “hot” digital wallets from offline wallets, convert stablecoins from one another or carry out network upgrades, sometimes causing delays.īinance said in a tweet about 16:54 GMT that USDC withdrawals had resumed.Ĭryptocurrency news outlet CoinDesk reported earlier that Binance saw outflows of $902m on Monday.īinance has already been under pressure from authorities. □Ī Binance spokesperson earlier said it always had “more than enough funds” to meet withdrawal requests. I actually think it is a good idea to “stress test withdrawals” on each CEX on a rotating basis. Some days we have net withdrawals some days we have net deposits. We saw some withdrawals today (net $1.14b ish). Some days we have net withdrawals some days we have net deposits.” “We saw some withdrawals today (net $1.14b ish). The withdrawals were “business as usual,” Binance CEO Changpeng Zhao tweeted. “Binance’s withdrawals are increasing due to the growing uncertainty about its reserves report,” a Nansen spokesperson said. The $1.9bn of withdrawals of tokens based on the Ethereum blockchain mark the largest daily outflow over a 24-hour period since June 13, the Nansen data showed, and accounted for the majority of the funds being pulled in the last seven days. The report showed its holdings of Bitcoin exceeded customer deposits on a single day in November. FTX founder Sam Bankman-Fried was charged by the US Securities and Exchange Commission on Tuesday with defrauding investors.īinance, whose dominance of the cryptocurrency market was cemented by the fall of FTX, last week tweeted a so-called “ proof-of-reserves report” by audit firm Mazars. How cryptocurrency exchanges, such as Binance and its now-bankrupt former rival FTX, handle customer deposits is under close scrutiny from users and regulators. Binance has registered $1.9bn of withdrawals in the past 24 hours, blockchain data firm Nansen said on Tuesday, as the world’s biggest cryptocurrency exchange said it had “temporarily paused” withdrawals of the USDC stablecoin. ![]()
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