Cryptocurrency exchange Kraken has announced that it is experiencing difficulties with its Automated Clearing House (ACH) deposit and withdrawal channel, which is serviced through the failing Silvergate Bank.
Cryptocurrency exchange Kraken announced the suspension of operations due to the fact that it still could not choose a new banking partner.
“From March 27, Kraken customers will no longer be able to deposit via Plaid and withdraw funds via the ACH channel hosted by Silvergate. We are working to bring new ACH service options to users through alternative financial service providers as soon as possible,” a Kraken spokesperson told reporters.
The Kraken team clarified that the temporary restriction of operations will not affect other services of the exchange. The marketplace encouraged users to review other transaction options available, including the MVB Bank channel for deposits and withdrawals through Fedwire services.
This is not the only case of breaking partnerships between cryptocurrency exchanges and financial institutions. Previously, such restrictions were introduced by the cryptocurrency exchange Coinbase in relation to its clearing partner Signature Bank. The exchange has stopped supporting settlements through Signet’s digital payment platform, owned by Signature, after it was forced to shut down by US financial regulators.