• The recent Silvergate and Signature Bank failures left Binance.US without banking services, making it difficult for the exchange to identify a new bank partner.
• A WSJ report has indicated that the exchange is facing challenges in finding the right bank partner due to US regulatory crackdown on banks with crypto clients.
• Binance.US is currently holding customer funds through financial technology firm Prime Trust’s banking partners while looking for a new direct banking relationship.
Binance.US Struggles to Find Bank Partner
Recent Failures of Silvergate and Signature Banks
The recent collapse of Silvergate and Signature Bank left Binance.US without banking services, forcing the crypto exchange to look for a new bank partner to serve as a fiat on-ramp and off-ramp for its customers in the United States.
WSJ Report Indicates Challenges for Binance US
A Wall Street Journal (WSJ) report published on April 8th indicates that the exchange is facing challenges in identifying the right bank partner due to US regulatory crackdown on banks with crypto clients. As a result, Binance.US is currently depending on middleman banks to store customer funds while trying to establish a direct banking relationship with other potential partners such as Cross River Bank and Customers Bancorp but have so far failed in doing so.
Regulatory Crackdown Affects Exchange Services
The ongoing Commodity Futures Trading Commission (CFTC) investigation into Binance Holdings since 2021 has had significant effects on the exchange including leading to a drop in its crypto market share which has also been affected by its lack of direct bank access. This has resulted in some US dollar deposit services being temporarily affected as it transitions from old service providers over the next few weeks.
Binance Looking For New Payment Providers
In order to resolve these issues, Binance is actively searching for new payment providers that are capable of providing reliable services for both their customers and business operations alike under current regulations in place by US authorities, though no announcement has been made yet regarding any potential partnerships or deals made thus far .
Overall, it appears that despite their efforts, Binance is still struggling to find an appropriate bank partner due to existing regulatory pressures within the country which makes it difficult for them or any other cryptocurrency related business operating within America’s borders at this time in finding trusted partners willing work with them directly when handling payments or storing customer funds securely.