HomeCryptocurrenciesBinance.US Struggling to Find Banking Partner to Handle Customers' Deposits

Binance.US Struggling to Find Banking Partner to Handle Customers’ Deposits

Crypto exchange Binance.US, an affiliate of the global industry leader Binance, is having problems finding a bank that is willing to handle customers’ cash, according to a report by the Wall Street Journal. Binance.US previously used the services of Signature Bank and Silvergate to store deposits but now needs a new banking partner after both banks collapsed in March.

WSJ reports that Binance.US is currently using a “middleman” who is making deposits on its behalf. However, this method is seen as unsustainable due to the time needed to process the payments.

“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 Binance.US spokesperson told WSJ.

So far, Binance.US has reportedly reached out to multiple banks that have a history of supporting crypto firms, including New Jersey-based Cross River Bank and Pennsylvania-based Customers Bancorp. However, both of the mentioned banks have declined the crypto exchange.

The main reason why the banks are reluctant to establish a banking relationship with Binance.US is the concerns about the regulatory risks that might follow.

Binance.US previously saw its acquisition of crypto lender Voyager Digital placed on hold by a New York federal judge after facing objections from the U.S. government. Its parent company, on the other hand, is currently being sued by Commodity Futures Trading Commission (CFTC).

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