The US arm of global cryptocurrency exchange Binance is struggling to find a banking partner after the collapse of Signature Bank and Silvergate Bank, The Wall Street Journal mentioned.
While searching for a major banking partner, Binance US is now using the services of at least one intermediary bank to hold cash deposits from cryptocurrency traders on the platform. Intermediary bank services rather than a direct banking partner slow down exchange services for clients such as deposits and withdrawals in US dollars.
Previously, Binance US used the services of Signature Bank and Silvergate Bank as the only banking partners in the US for customer deposits. However, both crypto-friendly banks failed last month: Silvergate announced a voluntary liquidation, and the signature bank went under FIDC custody.
The report showed that Binance US unsuccessfully sought direct banking services from several lenders, including New Jersey-based Cross River Bank and customers Bancorp Inc. It is a regional bank headquartered in Pennsylvania.
“We work with many banking and payments providers in the US and continue to onboard new partners as we upgrade our internal systems to create a more stable platform and offer additional services,” said a Binance US spokesperson.
Now, Binance uses US Prime Trust LLC, a crypto services and financial technology company, to store customer funds. Prime Trust has confirmed that it deposits customer cash with a network of banking partners.
In addition, the exchange is experiencing issues with USD deposits and withdrawals as it “migrates to new banking and payment service providers over the next several weeks.” Although they have returned wire transfers, services related to debit cards, Apple Pay and Google Pay are not available.
Binance problems in the US
Binance, the largest crypto exchange by trading volumes, is facing massive regulatory backlash in the US. Last month, the Commodity Futures Trading Commission (CFTC) sued Binance and its CEO, Changpeng Zhao, for various regulatory violations.
The exchange is said to be facing investigations from the Securities and Exchange Commission and the Department of Justice. However, they have not filed any charges yet.
Moreover, Binance’s operations are facing setbacks outside the US. Binance Australia Derivatives, operated by Ozachi Trading Pty Ltd, recently lost its Australian Financial Services (AFS) license. Although Binance requested the withdrawal, it came after a regulatory hearing.
Meanwhile, Binance recently expanded its services in inflation-hit Argentina where people can now trade cryptocurrencies directly on the exchange with local pesos.
The US arm of global cryptocurrency exchange Binance is struggling to find a banking partner after the collapse of Signature Bank and Silvergate Bank, The Wall Street Journal mentioned.
While searching for a major banking partner, Binance US is now using the services of at least one intermediary bank to hold cash deposits from cryptocurrency traders on the platform. Intermediary bank services rather than a direct banking partner slow down exchange services for clients such as deposits and withdrawals in US dollars.
Previously, Binance US used the services of Signature Bank and Silvergate Bank as the only banking partners in the US for customer deposits. However, both crypto-friendly banks failed last month: Silvergate announced a voluntary liquidation, and the signature bank went under FIDC custody.
The report showed that Binance US unsuccessfully sought direct banking services from several lenders, including New Jersey-based Cross River Bank and customers Bancorp Inc. It is a regional bank headquartered in Pennsylvania.
“We work with many banking and payments providers in the US and continue to onboard new partners as we upgrade our internal systems to create a more stable platform and offer additional services,” said a Binance US spokesperson.
Now, Binance uses US Prime Trust LLC, a crypto services and financial technology company, to store customer funds. Prime Trust has confirmed that it deposits customer cash with a network of banking partners.
In addition, the exchange is experiencing issues with USD deposits and withdrawals as it “migrates to new banking and payment service providers over the next several weeks.” Although they have returned wire transfers, services related to debit cards, Apple Pay and Google Pay are not available.
Binance problems in the US
Binance, the largest crypto exchange by trading volumes, is facing massive regulatory backlash in the US. Last month, the Commodity Futures Trading Commission (CFTC) sued Binance and its CEO, Changpeng Zhao, for various regulatory violations.
The exchange is said to be facing investigations from the Securities and Exchange Commission and the Department of Justice. However, they have not filed any charges yet.
Moreover, Binance’s operations are facing setbacks outside the US. Binance Australia Derivatives, operated by Ozachi Trading Pty Ltd, recently lost its Australian Financial Services (AFS) license. Although Binance requested the withdrawal, it came after a regulatory hearing.
Meanwhile, Binance recently expanded its services in inflation-hit Argentina where people can now trade cryptocurrencies directly on the exchange with local pesos.
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