Tuesday, June 6, 2023

After some banks like Silvergate Bank, Silicon Valley Bank, and Signature Bank shutdown, cryptocurrency companies are now looking for new banks that are based in the United States. According to a report from people who know about this situation, the American branch of the cryptocurrency exchange named Binance US is having trouble locating a bank partner in the US.

Struggles Continue For Binance US to Secure a Banking Partner

The Wall Street Journal said on Saturday that Binance US has been having trouble finding a bank to work with. For now, they have told their customers that they won’t be able to deposit money using U.S. dollars and that this situation is only temporary while they look for a new banking partner. Once the new partner is found, deposits will once again be available.

The Wall Street Journal reported recently that Binance has had trouble finding a bank to partner with. This came after three crypto-friendly U.S. banks closed down – according to the paper, it’s been hard for Binance US to link up with any new banks since then.

Recently, Binance US tried to set up accounts with two different banks. The first one is Cross River Bank based in New Jersey which helps cryptocurrency businesses and companies related to finance. The other bank is Customers Bancorp Inc, a regional bank located in Pennsylvania. However, unfortunately, their attempts did not succeed.

A spokesperson from Binance US told reporters that they are working hard to create a more reliable payment system and offer additional services. Although, it is unknown if other companies are struggling to find people to back them up, but Bittrex had closed its American functions because the U.S.’s expectations for them were too strict for Bittrex to follow.

On March 27, the U.S. government filed a lawsuit against Binance Holdings Ltd., which is the owner of Binance US, because of not following certain rules and regulations on trading and derivatives. The lawsuit also involved the CEO Changpeng Zhao (CZ) and their former Chief Compliance Officer Samuel Lim. The Wall Street Journal reported that some banks had worries about doing business with Binance US because they were worried it might be breaking some laws.

What do you think the future is going to be like for cryptocurrency exchanges when it comes to working with traditional banks? Do you think increased regulations will have an impact on this relationship? Let us know in the comments section what you think.


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