• The recent collapse of Silvergate and Signature Bank has left Binance.US without banking services.
• A WSJ report has indicated that the exchange is struggling to find a new bank partner for its US customers.
• Regulatory crackdown on banks with crypto clients is seen as a major factor contributing to the difficulties Binance.US is facing in finding a new bank partner.
Binance.US Lacks Banking Services
The recent failures of Silvergate and Signature Bank have left Binance.US without banking services, making it difficult for its customers to transact in fiat currency within the United States.
Challenges Finding New Bank Partner
A Wall Street Journal (WSJ) report has indicated that Binance.US is having difficulty finding a new bank partner which will serve as a fiat on-ramp and off-ramp for its US customers. Currently, funds are being stored by Prime Trust’s banking partners, but this arrangement may not be sustainable if the exchange fails to identify an appropriate bank partner soon.
Regulatory Crackdown Affecting Banks
The regulatory climate in the US towards banks with cryptocurrency clients has caused significant challenges for Binance.US in establishing direct relationships with potential banking partners such as Cross River Bank and Customers Bancorp, all of whom have been unsuccessful in securing partnerships with the exchange thus far. The CFTC’s lawsuit against Binance Holdings and CZ Zhao last month has had an impact on the exchange’s ability to ensure secure storage of customer funds due to lack of appropriate banking services available in the US market at present time.
Temporary Affect On Dollar Deposits
Due to these circumstances, some dollar deposit services offered by Binance will be temporarily affected while the exchange transitions over to new banking and payment service providers over the next few weeks – potentially further complicating access to essential financial services required by its customers located within U.S borders who wish to transact in fiat currency via their accounts held at Binance .
Conclusion
The absence of a direct bank relationship has greatly impacted users of Binance’s U.S arm – making it increasingly difficult for them to make use of their accounts held at this particular crypto exchange when transacting using fiat currencies until such time that an adequate solution can be found through either establishing or formalizing an existing relationship between itself and an appropriately regulated financial institution operating within U.S jurisdictions
