Feb 17, 2023

Binance Suspends USD Bank Transfers Amid Crypto Turmoil

Binance, the world’s leading crypto exchange by trading volume, recently announced that it will suspend U.S. dollar bank transfers in the near future. The exchange made the announcement via Twitter on Feb. 6, clarifying that no other trading methods would be affected. Binance CEO Changpeng Zhao also noted in a tweet that only 0.01% of the exchange’s total users will be affected by the suspension and that they are working to resolve the issue.

The move comes after Signature Bank, Binance’s SWIFT transfer partner, announced that, as of Feb. 1, it would only accept trades from clients with U.S. dollar bank accounts over $100,000. The bank had previously declared that it was severely restricting deposits from cryptocurrency consumers.

In response to the announcement, Binance stated that it was looking for a new SWIFT partner and that all SWIFT trades involving other currencies, as well as trading in U.S. dollars using credit or debit cards, will continue to be accepted.

Signature Bank’s decision follows its plans to sell up to $10 billion in crypto deposits in December in an effort to reduce its exposure to the turbulent market changes. According to Nansen data shared with Cointelegraph, notable stablecoin movements include crypto trading group Jump withdrawing $160 million in stablecoins and Oapital, a digital asset investment firm, withdrawing $230 million. Andrew Thurman, head of content at Nansen, noted that while the seven-day outflows might be a little high, the 24-hour inflows show it’s nowhere close to panic.

The current situation highlights banks’ hesitance to deal with digital assets, particularly without uniform regulations governing the nascent market. Many countries in the European Union have even imposed a total ban on a national regulatory level until the Markets in Crypto-Assets package, a pan-European regulatory set for digital assets, enters into force.

Tony Petrov, chief legal officer at compliance-as-a-service provider Sumsub, explained that the ongoing bear market is another reason behind the bank’s recent action. He said that when the crypto market was skyrocketing, some banks were simply pushed into the open arms of crypto exchanges, but now some banks that were actively involved in crypto may rethink their involvement and change their policies.

Lars Seier Christensen, the founder of Saxo Bank, believes the developments around FTX and other crypto disasters, combined with the low volumes in the market, have hurt confidence in the industry. Banks believe the benefits associated with crypto trading activity are not proportional to the increasing regulatory and business risks.

Eddie Hui, chief operating officer at crypto exchange platform MetaComp, noted that it is not uncommon to see an increase in bank runs on exchanges. To mitigate this hurdle, he suggested that crypto businesses should make an effort to “reinstate their reputation,” and for that, they will need more stringent compliance infrastructure.

Overall, the recent action of Binance’s USD banking partner has caused a stir in the crypto community. Until uniform regulations are in place, crypto exchanges will have to mitigate the hurdles and risks on their own. To ensure that the crypto industry can continue to thrive, it is essential to make sure that NFTs, crypto, web3, and other related topics are promoted in a responsible and effective manner. This is where an experienced NFT marketing agency or web3 agency can help.

NFT marketing agencies specialize in helping organizations and individuals to promote their NFTs and sell them to the right audience. They can provide a range of services, such as setting up a Twitter NFT marketing campaign, creating engaging visuals and content, and optimizing NFTs for maximum visibility.

Ultimately, it is essential to ensure that the crypto industry can continue to grow and thrive. By utilizing the services of a reputable NFT marketing agency or web3 agency, organizations and individuals can take advantage of the latest marketing trends and techniques to promote their NFTs and increase their chances of success.

Disclaimer: All investment or financial opinions expressed by MoonLanding Media are not recommendations and are intended for entertainment purposes only. Do your own research prior to making any kind of investment. This article has been generated based on trending topics, has not been fact checked and may contain incorrect information. Please verify all information before relying on it.