Binance will suspend US dollar transfers from Wednesday, and that's reportedly causing millions to flow to rival exchanges

• Binance will suspend the transfer of US dollars on its exchanges from Wednesday, reports say.
• The exchange didn't give a reason for the suspension, which won't affect US-based customers.

Binance, the world's largest crypto exchange, will suspend US dollar transfers from Wednesday, and the move is reportedly fueling millions of dollars in outflows from the platform to rivals.

A company spokesperson told several outlets Monday, including CNBC and Bloomberg, that deposits and withdrawals of dollars would cease indefinitely, without giving a reason for the move. Transfers in other fiat currencies such as the euro were unaffected.

"We are temporarily suspending USD bank transfers as of February 8th," the Binance spokesperson told CNBC. "Affected customers are being notified directly."

The company told the publication "0.01% of our monthly active users leverage USD bank transfers" and added that "we are working hard to restart service as soon as possible."

The spokesperson told Bloomberg that other methods of transferring crypto via credit card, Google Pay and Apple Pay, also remained unaffected.

In a tweet, Binance US, the US arm of the group, said it was unaffected by the restriction, indicating the suspension would only affect dollars held by non-US customers.

According to data provided to CNBC by Arkham Intelligence, the announcement caused millions of US-tied stablecoins like Tether and USD Coin to flow from Binance's crypto wallet to rival exchanges.

"We're still overwhelmingly net-positive on net deposits," the spokesperson told CNBC in response to reports of outgoings. "Outflows always tick up when prices start to level off following a bullish market swing like we saw last week as some users take profits."

Binance didn't immediately respond to Insider's request for comment.