Report: Binance US Struggles to Secure Banking Partner Amid Regulatory Crackdown on Crypto Industry

Following the illness of Silvergate Bank, Silicon Valley Bank, and Signature Bank, cryptocurrency companies person been seeking caller banking partners successful the United States. According to a caller study citing “sources acquainted with the matter,” Binance US, the American subsidiary of the cryptocurrency exchange, is having trouble uncovering a U.S. banking partner.

Unnamed Sources Say Binance Has Unsuccessfully Sought to Establish U.S. Banking Partners

The Wall Street Journal (WSJ) reported connected Saturday that Binance US is experiencing trouble successful uncovering a U.S. banking partner. Currently, Binance US customers person been informed that “certain USD deposit services volition beryllium temporarily unavailable.” Binance US stated that it was “transitioning to a caller banking partner,” and services would resume erstwhile the process was complete.

However, sources quoted by WSJ reporters Caitlin Ostroff, Rachel Louise Ensign, and Alexander Osipovich bespeak that Binance has faced challenges successful uncovering a banking partner. The study states that Binance US has allegedly attempted to found connections with respective circumstantial banks pursuing the illness of the 3 crypto-friendly U.S. banks. Ostroff’s, Louise Ensign’s, and Osipovich’s study adds:

Binance US has unsuccessfully sought to found nonstop banking relationships with banks including Cross River Bank, the New Jersey-based lender that serves immoderate crypto and financial-technology firms, and Customers Bancorp Inc., a Pennsylvania-based determination bank, successful caller months, the radical said.

The reporters further spoke with a spokesperson from Binance US, who stated, “We enactment with aggregate U.S.-based banking and outgo providers and proceed to onboard caller partners portion upgrading our interior systems to make a much unchangeable fiat level and connection further services.” It is uncertain whether different cryptocurrency businesses are facing akin issues successful uncovering banking partners, but the crypto speech Bittrex recently closed its U.S. operations, citing excessive regulatory oversight successful the United States arsenic the crushed for the shutdown.

On March 27, the U.S. Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance Holdings Ltd., the genitor institution of Binance US, alleging violations of trading and derivatives rules. The suit besides includes Binance CEO Changpeng Zhao (CZ) and the company’s erstwhile main compliance officer, Samuel Lim. The WSJ study connected Saturday stated that “among the reasons that immoderate banks were hesitant to bash concern with Binance US was interest implicit regulatory risk,” according to sources acquainted with the matter.

What bash you deliberation the aboriginal holds for cryptocurrency exchanges successful presumption of partnering with accepted banking institutions, particularly successful airy of accrued regulatory scrutiny? Share your thoughts successful the comments conception below.

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