BinanceUS failing to find banking partner: Report
Reportedly Binance.US is struggling badly to get a new banking partner, amid the US banking crisis.
Binance.US is an independent subsidiary of the Binance crypto exchange. Binance.com is a global crypto trade platform by trade volume. Since 2021, Binance.com has been under the investigation of the United States Commodity Futures Trading Commission (CFTC). In 2022, the CFTC agency sued Binance.com over unregistered derivatives trading offerings in the US and non-cooperation with the regulators.
On 8 April 2023, Wall Street Journal (WSJ) reported that Binance failed to get a new banking partner in the US, as its old banking partners Silvergate and Signature Bank had collapsed & the new owner of these banks left crypto customers.
With a new bank account under a new banking partner, BinanceUS plans to hold customers’ funds. For the same, BinanceUS approached Cross River Bank and Customers Bancorp but failed.
Temporarily, BinanceUS is holding customers’ funds on behalf of a technology firm Prime Trust and looking for a banking partner as soon as possible.
A BinanceUS spokesperson spoke with WSJ on this report and said that the exchange is in talks with several US banks and is also working on internal system upgrades to make the platform’s fiat platform better.
“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,” a BinanceUS spokesperson said.
Recently a few media reports confirmed that a similar kind of situation has developed in the United Kingdom (UK), where the majority of the banks are stepping away from crypto companies and they are asking for additional informations & documents from their crypto customers.
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