After the closing of Silvergate Bank, Silicon Valley Bank and Signature Bank, cryptocurrency businesses have been trying to find new banking partners in the United States. Recently, according to information that has been given by somebody who knows about this issue, Binance US (the USA side of a crypto business) is having difficulties finding an American bank to work with.
Binance US Struggling to Find Banking Partner in US After Crypto-Friendly Banks Shutdown
The Wall Street Journal said last Saturday that it’s not easy for Binance US to find a United States bank that it can work with. So, customers of Binance US were told that they won’t be able to make deposits using USD for a while. The company also stated that when the process of finding another banking partner is complete, this service will become available again.
The Wall Street Journal just reported that Binance US has been facing trouble finding a banking partner after the shutdown of three crypto-friendly banks in the U.S. Apparently, they’ve tried to link up with some other banks but have not been successful yet.
“Binance US has tried to set up connections with a couple of banks recently, but it hasn’t succeeded yet. These banks are Cross River Bank from New Jersey who handle some crypto and tech stuff, and Customers Bancorp Inc., which is from Pennsylvania.”
When reporters talked to a spokesperson from Binance US, they said their company is trying to get more banking and payment partners, while also improving their internal systems. It’s not clear if other crypto businesses are having trouble getting partners too; but recently, Bittrex closed down its business in America saying the US has too much control over it.
The U.S. Government recently filed a lawsuit against the company “Binance Holdings Ltd.” and its owner Changpeng Zhao (CZ). Along with CZ, it includes Binance’s former chief compliance officer Samuel Lim in this legal action. A report from The Wall Street Journal revealed that the reason some banks didn’t want to work with Binance US was because they were worried about potential problems with the government regulations.
What do you think about cryptocurrency and traditional banking getting together in the future? Will more regulations make it more difficult for them to work together? Let us know what you think in the comments.