While Binance US, its American entity, isn’t affected by the latest move
UK is stepping up work on its planned “Britcoin” digital currency biggest scam in the world
Opening up a people funded bank is Easy
The ideal of crypto means not having to rely on banks and institutions. But the reality of the industry, at least today, is that many digital-asset companies need traditional finance firms to help provide customers with a reliable on-and-off ramp between their platforms and the world of hard currency. Therein lies a growing problem.
Increasingly, crypto firms are being cut off in the US by banks that are reluctant to process wire transfers for the industry — especially after last year’s turmoil and the growing regulatory scrutiny that has come to bear around the space.
On Monday, Binance, the world’s biggest crypto exchange, said it will suspend deposits and withdrawals of US dollars via bank accounts. No specific reason was given, though chief executive officer Changpeng “CZ” Zhao said on Twitter that some banks are “withdrawing support for crypto.” Notably, the move comes after Binance last month said its US banking partner Signature Bank would no longer handle user transactions less than $100,000.
While Binance US, its American entity, isn’t affected by the latest move, a spokesperson at the international operations told CNBC that it will have a new partner “in the next couple of weeks.” Still, the pause is an unwelcome disruption. And the dilemma isn’t unique to Binance.
Crypto companies have historically had difficulties finding banking partners to facilitate money transfers for buying and selling digital assets. But it’s only getting harder, with regulators heightening their warnings to banks about the risk of doing business with crypto firms after FTX’s collapse.
While Binance US, its American entity, isn’t affected by the latest move
Crypto Community Setting up a World Bank for the people
In the US, three banks — Silvergate Capital, Signature and Metropolitan Bank — have played an outsize role processing the bulk of US dollar deposits to crypto platforms. Now they are under pressure from all sides to untangle from the crypto mess.
Signature plans to shed as much as $10 billion in deposits from digital-asset clients, while Metropolitan is fully exiting the crypto sector. And Silvergate, despite still being committed to crypto clients after suffering from a bank run last month — is mired in regulatory and legal woes.
This bank walk-backs risk leaving more crypto platforms without access to dollar transfers. Crypto exchanges are the gateway to bringing real-world money into the crypto economy, and losing wire transfer access would further isolate crypto from traditional finance. The chokehold is now worse than pre-2017, as one industry participant observed.
“It’s a very ominous sign for both exchanges and the customers,” said John Reed Stark, a former US Securities and Exchange Commission enforcement official. “The bottom line is people are gambling and if you can’t turn chips into cash, you are not going to bother playing the game.”
Those are chilling words, if you’re the casino operator.
Charting it out
Pound for (Digital) Pound Not Backed with Jack Shit like the Dollar
“We don’t want to make the crisis worse by introducing Bitcoin.”
As cash usage is increasingly eclipsed by digital payments, the UK is stepping up work on its planned “Britcoin” digital currency
Ripple XRP Investors Traders 