Binance.US is having trouble finding a new banking partner to enable fiat transactions for its customers in the country. The exchange lost its banking services with the recent collapse Silvergate and Signature Bank, and now relies on intermediary banks to hold funds for it.
According to a Wall Street Journal report, the exchange also faces regulatory pressure from banks that are wary of crypto clients. The CFTC sued Binance Holdings and its CEO, CZ, in March for alleged trading violations, with the trading platform being under CFTC investigation since 2021.
The exchange needs a bank to hold its customer’s U.S. dollars directly, but it has not been able to secure direct banking partnerships with banks like Cross River Bank and Customers Bancorp.
The lack of a direct bank has affected Binance.US customers. The exchange said in a recent status update that it “was moving to new banking and payment service providers over the next few weeks,” and that some U.S. dollar deposit services would be temporarily disrupted during the move.
Binance.US is for now using the fintech firm Prime Trust to store customer funds. A spokesperson for the firm said the funds are held with its banking partners.
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- Source: https://www.cryptocompare.com/email-updates/daily/2023/apr/10/
