Update: This service has been TEMPORARILY SUSPENDED. Details in the end of the post !!!
Binance has launched a new feature ‘Binance Direct Sell‘ which let users send Crypto / USDT directly to their bank accounts which using P2P thus saving themselves from the on going bank chain dispute scam.
How Binance Direct Sell Works ?
Binance is using a 3rd party payment processing companies like SimPaisa , Bifinity UAB etc. Which allows Binance users to send their crypto assets to their own KYC’d bank accounts. SimPaisa/Bifinity UAB etc are using a nostro vostro mechanism, which majority of freelancers will be familiar with who use services like Wise, Payoneer etc.
When you receive a payment in your bank, it will be sent from Faysal Bank and the sender account title will same as your name.
How to Use Binance Direct Sell
All KYC’d Binance users can use this service, to proceed ensure that you are on the ‘Pro‘ mode of Binance App ( you can switch from Lite Mode to Pro Mode in App settings)
- Open Binance App and tap Trade > Buy/Sell.
- Select “Sell” Choose USDT to sell and enter the amount.
- Choose [Bank Transfer / Wallet] as the receive method and tap [Preview Order].
- Choose the bank or mobile wallet to receive the PKR, and fill in the details.
- Once the withdrawal order is submitted, please wait patiently for it to be processed. Tap [View History] to check the order status.
The withdrawal process is instant and you will get your funds in your bank account in under a few seconds.
NOTE: Please ensure your Binance app is updated, as this option may not appear for your otherwise.
Binance Direct Sell Demo Video
This video demonstrates using Binance Direct Sell
Binance Direct Sell Fee Structure
As per our testing, your crypto gets exchanged as per interbank PKR/USD rate and there is an additional flat fee of 2.5% for all transactions.
Which Banks Work with Binance Direct Sell ?
All Banks including EMI (Sadapay , Nayapay etc) work with Binance Direct Sell including Roshan Digital Accounts.
Please ensure while using Binance Direct Sell that you send funds only to the account which is in your name and matches with the with the name you have on KYC with Binance.
As a precautionary measure until things become really clear, I would suggest to use EMI accounts (Sadapay, Nayapay etc) with Binance Direct Sell at the moment.
Can we Buy using Binance Direct Method ?
No, uptil now this option is only available while selling your crypto assets and allowing you to get fiat in your own bank account.
Can Our Bank Account get Blocked Using Binance Direct Sell ?
Accounts blocks were happening due to bank chain dispute scam, which is not applicable in this method therefore risk of account block does not exist if Binance Direct Sell method is used.
Are these payments remittance ?
Multiple users have reported that the received amount is showing as “remittance” in their account and some users have been able to receive Electronic Proceeds Realization Certificate (ePRC / S PRC) against the payment aswell. Payments are also being shown as remittance for standard bank account holders. Which implies that your payment is being realized as a foreign remittance in the local bank. A sample PRC is attached below as sample.
Current Status
Binance set up a temporarily suspended tag on this facility after 1 day of launching it.
While the service was greatly applauded as it solved lots of issues for p2p users in Pakistan. However, it seemed too good to be true and many users doubted that it will stay for long.
Binance shared their thoughts on the suspension :
We sincerely apologize for the inconvenience caused by the closure of the channel. We understand how important this service is to you. The decision to close the channel was made in collaboration with the bank, and we are actively working to resolve the situation.
While we do not have an estimated time for the channel to be reinstated, please rest assured that we are monitoring the situation closely.
So, basically the service providers and the banks realized they can not make things so easy for us due to lack of regulations and therefore closing it down is better. Personally, I doubt the service will be coming back any time soon, although I hope it gets restored ASAP.
Conclusion
It’s a great addition done by Binance which may allow us to sell our crypto assets without the Bank Chain dispute’s and other hassles, although the fee may be reconsidered and brought down to 0.5% due to the high volume available with Binance. This move will also bring down p2p rates as the monopoly of Merchants will end if Binance Direct Sell option continues to work.
Pakistani Government may regulate crypto to make things even more seamless. While we do not know the implications of Binance Direct sell in current crypto regulatory framework of Pakistan, nor anyone can tell for sure if this will bring any issues with banks or FIA in future. But we can all hope it stays and is not exploited by either side.
If you have any more queries, please feel free to ask in our facebook group or discord.
