• Binance.US is in the process of finding a new bank partner as its previous two partners (Silvergate and Signature Bank) have collapsed.
• However, according to a WSJ report, the exchange is having difficulty in identifying a new bank partner due to US regulatory crackdowns on banks with crypto clients.
• This has affected Binance.US customers as some US dollar deposit services will be temporarily affected until the exchange finds a new banking and payment service provider.
Binance.US Struggles to Find Bank Partner
Previous Partners Silvergate and Signature Bank Collapse
Binance.US is looking for a new bank partner to serve as a fiat on-ramp and off-ramp for its clients in the US following the collapse of Silvergate and Signature Bank, leaving it without banking services.
Regulatory Challenges Make Identification Difficult
A Wall Street Journal report has indicated that the exchange is facing challenges in identifying an appropriate bank partner due to US regulatory crackdowns on banks with crypto clients, such as Binance Holdings which was subject to CFTC investigation last month resulting in a lawsuit against its CEO Changpeng „CZ“ Zhao.
Impact on US Dollar Deposit Services
The lack of direct banking services has had an effect on Binance.US customers who were informed that some of their US dollar deposit services would be temporarily affected while the exchange transitions to new banking and payment service providers over several weeks.
The concluding statement here is that while Binance.US continues its search for a suitable bank partner due to financial difficulties associated with previous partners, it faces further challenges due to regulatory restrictions which have impacted customers‘ access to certain services until further notice