Binance US drops FDIC insurance amid regulatory pressure
Cryptocurrency exchange Binance US has withdrawn FDIC insurance for user funds. The exchange faces regulatory heat from the US Securities and Exchange Commission (SEC). The SEC lawsuit ramifications are spilling over. In a significant policy change, Binance US, the American arm of the global cryptocurrency exchange Binance, has revoked FDIC insurance coverage for user funds. The move comes amid an ongoing legal battle with the US SEC, which has accused the exchange of violating federal securities laws. The FDIC insurance withdrawal Binance US users were previously covered by FDIC insurance , providing a level of protection for their cryptocurrency holdings. However, following an update in their terms of service, the exchange has informed users that their crypto deposits are no longer insured by the Federal Deposit Insurance Corporation (FDIC). The updated terms explicitly state, “Digital Assets are not legal tender, are not backed by any government,...