U.S. Arm Fails To Find A Suitable Banking Partner

Binance News: After the abrupt failure of Signature Bank a month ago, the U.S. arm of Binance is having trouble finding a suitable bank to handle its customers’ cash, according to a report published by the Wall Street Journal. As of now, Binance.US is making use of at least one intermediary to store its customers’ assets. This has led to a significant delay in the process of transferring and moving funds.

Binance.US Seeks Banking Support

Earlier, user deposits were either transmitted to Signature Bank or Silvergate Capital Corp, two premier financial institutions that were known for their support of cryptocurrency. However, when both fell through, the exchange is reportedly scrambling to find a new financial partner.

Read More: Ripple Becomes The Only Platinum Partner In Global CBDC Symposium; XRP Price Set To Rally?

In the past few months, Binance.US has made several failed attempts to establish direct banking relationships with a number of financial firms, including Cross River Bank — which already has ties with a number of crypto companies  — and Customers Bancorp Inc., which is a regional bank based out of Pennsylvania.

According to WSJ, a spokesperson from Binance.US was quoted as saying:

We work with multiple U.S.-based banking and payment providers and continue to onboard new partners while upgrading our internal systems to create a more stable fiat platform and offer additional services.

Binance’s Growing Troubles

2023 hasn’t been much favorable for the world’s largest crypto exchange. Lately, Binance has been in the limelight for all the wrong reasons as it finds itself surrounded by regulatory hurdles and legal challenges. As reported by CoinGape in March, a lawsuit was filed against Binance and its CEO Changpeng Zhao by the U.S. CFTC for allegedly evading regulations and violating rules intended to prevent illicit financial activity.

In the wake of recent crackdowns by U.S. authorities, Dubai has also ramped up scrutiny on companies seeking crypto licenses. In order to implement more stringent compliance procedures, the Virtual Assets Regulatory Authority (VARA) has demanded crucial additional information from the Binance exchange.

In light of this Binance news, the exchange’s native cryptocurrency BNB, witnessed a drop of roughly 0.25% in the past one hour. As things currently stand, the price of BNB is exchanging hands at $311.63 and boasts a market cap of roughly $50 billion.

Also Read: Mt. Gox To Commence Repayment Of 142K BTC As Deadline Passes; Bitcoin Price In Danger?

Pratik has been a crypto evangelist since 2016 & been through almost all that crypto has to offer. Be it the ICO boom, bear markets of 2018, Bitcoin halving to till now – he has seen it all.

The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.