Binance.US Unable To Secure Banking Partner
Binance’s US arm is having difficulty securing a bank to handle customer funds in the aftermath of Silvergate Bank’s failure and increased regulatory scrutiny of the crypto industry.
According to the Wall Street Journal (WSJ), Binance.US, the crypto exchange’s US arm, has been unable to secure a banking partner following the failure of several crypto-friendly banks in the country. Customer deposits were sent to either Signature Bank or Silvergate Capital Corp prior to the recent banking crisis.
In the meantime, Binance informed its customers that “certain USD deposit services will be temporarily unavailable.” The exchange further said it was “transitioning to a new banking partner,” and services would resume once it secured a partnership.
The report states that Binance.US currently uses at least one intermediary to store funds. Since funds are held with a third party, delays in sending and moving funds are experienced.
(With inputs from Shikha Singh)
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