Binance US Says Crypto Deposits Are No Longer FDIC Insured

Binance's American entity informed users today that their crypto holdings with the exchange are no longer FDIC-insured.

The exchange's updated terms of service now read: "Your accounts and digital assets are not eligible for FDIC insurance protections."

The update also indicates that users will no longer be able to withdraw U.S. dollars without first converting them into stablecoins or another cryptocurrency.

The update comes fast on the heels of the FDIC warning individuals that money deposited with a "crypto-based financial services provider" is not FDIC-insured or protected.