The U.S. branch of cryptocurrency exchange Binance has struggled to find a bank to handle its customers’ funds. The Wall Street Journal writes about this, citing its sources.
Previously, deposits were sent to either Signature Bank or Silvergate Capital. However, after both burst, the exchange is forced to look for a new banking partner.
Binance.US uses at least one intermediary to hold funds, the sources say, adding that since the money is held by a third party, it could slow down the sending and moving of money.
The company tried unsuccessfully to establish relationships with Cross River Bank and Customers Bancorp, writes the WSJ.
“We are working with several banking and payment service providers in the US and continue to add new partners. We are upgrading our internal systems to create a more stable fiat platform and offer additional services,” a Binance.US spokesperson told the WSJ.
In March, the US Commodity Futures Trading Commission (CFTC) announced that it had filed a civil lawsuit in the US District Court accusing the Binance Group administration of numerous violations of the Commodity Exchange Act (CEA) and its own rules.
In early April, digital asset data provider Kaiko reported that Binance’s spot market share had dropped significantly over the past week. Despite the fact that 2023 started on a positive note for Binance, and by the end of 2022 the exchange became the absolute market leader with a share of more than 70%, it did not manage to hold on to this position for a long time.
