The US affiliate of global crypto exchange Binance tries to find a bank for its customers’ cash after its key banking partners collapsed.
Binance in the US is said to use at least one middleman to store customers’ funds on its behalf, which slow down the process of sending and moving funds.
The crypto exchange is struggling to find a bank since the failure of Signature Bank and Silvergate Capital, as reported by the «Wallstreet Journal» (behind paywall) citing unnamed sources.
Concerns over Regulatory Risks
Some banks were reluctant to do business with Binance due to concerns over regulatory risk, as it is being investigated by the Commodity Futures Trading Commission and other federal agencies.
Previously, Binance US has unsuccessfully sought to establish direct banking relationships with banks including Cross River Bank and Customers Bancorp.
Upgrading Internal Systems
«We work with multiple US-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 spokesperson for Binance US said.
