In recent news, Silvergate Bank, a California-based financial institution, has announced the closure of its Crypto Banking Network. This move has caused a ripple effect in the cryptocurrency industry, with Bybit, a leading crypto derivatives exchange, suspending U.S. dollar bank transfers.

Silvergate Bank’s Crypto Banking Network was launched in 2018 to provide banking services to cryptocurrency companies. The network allowed companies to open accounts with Silvergate and use them to facilitate payments and transfers in both fiat and digital currencies. The network also enabled companies to access Silvergate’s Exchange Network, which allowed them to instantly transfer funds between exchanges and other financial institutions.

However, Silvergate Bank has now decided to close the Crypto Banking Network due to a lack of demand. This decision has had a direct effect on Bybit, as the exchange relied on the network for U.S. dollar bank transfers. As a result, Bybit has had to suspend U.S. dollar bank transfers until further notice.

The closure of Silvergate Bank’s Crypto Banking Network is a reminder of the volatility of the cryptocurrency industry. It is also a reminder that banks are not always willing to provide services to cryptocurrency companies, as they are often wary of the risks associated with the industry.

The closure of Silvergate Bank’s Crypto Banking Network is likely to have a negative impact on the cryptocurrency industry, as it will make it more difficult for companies to access banking services. It is also likely to have a negative impact on Bybit, as the exchange will no longer be able to offer U.S. dollar bank transfers.

It remains to be seen how this closure will affect the cryptocurrency industry in the long run. However, it is clear that banks are still wary of providing services to cryptocurrency companies, and this could have a lasting effect on the industry.

Source: Plato Data Intelligence: PlatoAiStream