Binance US Looking For New Banks To Accept Deposits From Its Customers

Key Points:

• Binance US, is looking for a bank willing to accept deposits from its customers after Signature bank collapsed last month.
• The exchange attempted to partner with Cross River Bank and Bancorp Inc., but failed due to the banks’ concerns about regulatory risks.
• U.S. banks are raising their guard against crypto companies due to tightening regulations and fears of a spreading banking crisis.

Citing people familiar with the matter, Binance’s US subsidiary, Binance US, is having a hard time finding a bank willing to accept deposits from their customers.

Binance’s US branch had to find a new banking partner for it after Signature Bank collapsed last month due to investigations by regulatory authorities.

Previously, Binance deposits were held by Signature Bank and Silvergate Capital Corp (SI.N). Binance is scrambling to find new banking partners after both banks went bankrupt. According to the research, Binance US uses at least one middleman to keep money, and since the money is being kept by a third party, transferring and moving money might take longer.

The exchange attempted to partner with Cross River Bank and Bancorp Inc., but failed due to the banks’ concerns about regulatory risks. A spokesperson for Binance US said that the exchange works with a number of US banks and payment service providers and will continue to look for new partners as it upgrades its internal systems.

“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 suitable for Binance.US told the WSJ.

A sham compliance program and a “illegal” exchange were allegedly being run by Binance, its CEO, and its former top compliance employee, according to the U.S. Commodities Futures Trading Commission (CFTC), who also sued Binance. Investors have pulled $1.6 billion out of Binance since the lawsuit.

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