Binance USA, the United States arm of Binance, the world’s largest cryptocurrency exchange, is looking for a new banking partner!
Binance US Seeks New Banking Partner
According to a recent tweet by Reuters, Binance US, the US arm of the Binance exchange, is looking for a new banking partner, but the exchange is facing challenges. Binance stated that the purpose of the partnership is to securely manage cash deposits made by Binance users.
With the recent collapse of Signature Bank and Silvergate Bank in the US region, Binance is actively seeking new banking partners. These two collapsed crypto-friendly banks were previously responsible for processing Binance’s cash deposits in the US region. In light of these collapses, Binance US is looking for a partner that can efficiently and securely manage funds.
Banks Reluctant
According to some published reports, Binance has been in contact with several banks in the US to negotiate a deal. However, Binance has not been able to conclude any of them and has received reluctant feedback from the banks. According to some sources, the last banks that Binance contacted to establish a partnership were Cross River Bank and Custormers Bancorp Inc.
Essentially, banks are reluctant to do so because of the regulatory laws for digital currencies in the US region. After the recent FTX incident in the cryptocurrency market, these laws have been tightened even further. This has made banks wary of partnering with even the world’s highest-volume crypto exchange, such as Binance.
CFTC Sues Binance U.S. and Changpeng Zhao
Last month, the U.S. Commodity Futures Trading Commission (CFTC) sued Binance along with its CEO Changpeng Zhao (C.Z.) and former top compliance executive, alleging that they were operating an “illegal” exchange and a “sham” compliance program.
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