Bloomberg News reports that the largest cryptocurrency exchange in the world, Binance, has revealed that it is suspending transactions. In this context, it said that the deposits and withdrawals of US Dollars using bank accounts would be suspended. However, it will work upon restarting the service soon.
When will the Suspension Start?
According to a Binance spokesperson, the suspension will begin Wednesday. No reason was cited for the suspension. However, this move will not impact transfers involving fiat currencies like euros, stated the representative.
The spokesperson also said that just 0.01% of the active monthly users bank upon USD bank transfers; however, the services will resume soon, and the crypto exchange is working on the same. The representative made this known to the clients in an email statement. The other methods of selling and buying crypto on Binance using Apple Pay, credit cards, or Google Pay will not be affected.
Is Binance US Affected?
Binance US is a different entity altogether. This service provider caters only to US users, and it said that the move had not impacted them in any way.
Crypto firms were finding it difficult to find banking partners to facilitate the transfer of money for selling and buying digital assets. After the fall of FTX, banks have been sent warnings by federal regulators about the risks involved in doing business with crypto companies.
As stated by the Chief Executive Officer of Binance, Changpeng Zhao, while few banks have withdrawn support for the crypto, other banks are also moving in. The CEO was speaking in response to Binance’s announcement on Twitter. It was also said that some setbacks were apprehended from last year’s incidents.
Bloomberg News reports that last month Binance stated that Signature Bank, its banking partner, will handle user transactions provided they exceed $100,000 as exposure to the digital assets market becomes less for the lender.
In December, the New York-based bank plans to curb as much as $10 billion in deposits from crypto clients. A spokesperson on behalf of Signature stated on Monday that the bank could not comment on client-related matters.
