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).