Things have not been the same for the US-operating crypto firms, ever since the demise of the crypto pro banks. Many of the crypto firms are finding it difficult to find the banking partners to continue offering fiat-based services to their users.
Binance.US is on the Same Boat
It comes as a great shock that Binance.US, the US-branch of the globally renowned Binance exchange, is facing the similar situation.
The exchange officials have revealed that it has become challenging for them to find a banking partner, after all that has taken place in the banking sector in mid-March.
As per communication, the challenge is being faced in finding the fiat off-ramps and on-ramps banking partner to operate in the United States.
The exchange was never out of banking partners until the US regulators went after two major banking firms in the country. These firms were the Silicon Valley Bank, Signature Bank, and the Silvergate bank.
Although the exchange had nothing to do with the Silicon Valley Bank, the latter ones were its banking partners. With these banks meeting their fates, Binance.US has found itself out of options for the banking partners.
According to people familiar with the matter, the exchange is currently engaging with the middleman’s banks in order to store funds. This is a complete chaos for the exchange because it cannot continue with this strategy for long.
If the exchange does not find a partner, it may have to shut down the fiat-based services or entire operations in the country.
Failed Deals with the Banking Firms
With the relations getting cut with the “demised banks”, the exchange approached two banks for partnerships. The first bank being the Customers Bancorp and the second one being the Cross River Bank.
Unfortunately, both the banks declined the offers, making the matters worse for the exchange.
As a result, the exchange is unable to offer USD deposit and withdrawal services to the users based in the US. The exchange did intimate that it may take several weeks before they can find a new banking partner.
Despite the communication and the updates, the users are now concerned about the overall situation. If the exchange fails to find a new banking partner, things may take the worst turn.