How Does Binance Convert USD to Crypto Currencies?
To use the Convert feature, users must first deposit cryptocurrency into their P2P wallet portion of Binance account. When their funds have reached sufficiency, they can select their desired currency and enter an amount for receipt. Depending on their country of residence, verification may require IDs such as passports or driver’s licenses as well as bank statements or utility bills uploaded online for further evaluation before proceeding with exchange using this feature. Once complete, users can then utilize this tool to convert cryptocurrency for fiat currencies such as USD.
Binance, one of the world’s leading cryptocurrency exchanges, allows investors to trade fiat for cryptocurrency through various methods – whether this involves bank account transfers or debit and credit card purchases – as well as providing several ways for users to convert USD to crypto through its P2P marketplace.
Stablecoins have experienced rapid growth over the past several years, with multiple companies offering stablecoins to attract investors. Binance, the world’s leading crypto exchange, has made stablecoins an essential component of its business strategy and created its own peg coin called BUSD; though Binance claims their peg coins are 100% backed by native coins they represent, some experts argue otherwise.
Recently, Fortune reported that Binance had been secretly converting customer USDC balances into its own BUSD token without their knowledge or permission – in an effort to increase liquidity on its platform and capture revenue that otherwise went to competitors. This wasn’t the first time Binance encountered difficulties related to how it managed its stablecoin collateral reserves.
Though Binance denies wrongdoing, evidence exists to prove its actions were improper. Jonathan Reiter, co-founder and data analyst at blockchain analytics firm ChainArgos told Fortune that Binance’s actions appeared suspicious; in particular, issues regarding collateral management had previously arisen with regard to peg tokens held at Binance had caused problems for them.
Binance has decided to suspend trading of spot pairs between USD Coin and other stablecoins such as True USD and Pax Dollar for now, while still permitting users to withdraw their USDC holdings. Binance’s CEO Changpeng Zhao explained this move was necessary in order to “better align Binance with its stablecoin partners.” He promised he will work tirelessly so withdrawals for all USDC users are reinstated as quickly as possible while encouraging users to invest in Tether or BNB on Binance instead.