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Binance's US Subsidiary Has Trouble Finding A Bank To Accept Its Users' Funds: Report

Binance's US Subsidiary Has Trouble Finding A Bank To Accept Its Users' Funds: Report
After Signature Bank failed last month, the American branch of cryptocurrency exchange Binance is having trouble finding a bank to handle its customers' cash, according to a report published on Saturday by the Wall Street Journal, which cited people familiar with the situation.
Prior to this, the deposits were directed to Signature Bank or Silvergate Capital Corp, two institutions regarded as being sympathetic to cryptocurrencies. However, when both fell through, the exchange is reportedly scrambling to find a new financial partner.
According to the research, Binance.US uses at least one middleman to store money, and since the money is being kept by a third party, sending and moving money can take longer.
According to the article, the company has attempted to develop ties with Cross River Bank and Customers Bancorp Inc. without success. The report also stated that banks are hesitant because they are worried about regulatory risk.
No comments on the issue were available from any of the three companies.
“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 spokesperson 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. Commodity Futures Trading Commission (CFTC), who also sued Binance. Investors have pulled $1.6 billion out of Binance since the lawsuit.

Christopher J. Mitchell

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