US Regulators Investigate Binance Over Violations Of Russian Sanctions

Binance US, a subsidiary of the United States (US) crypto exchange is having trouble finding a US banking partner. This followed the collapse of Silvergate Bank, Silicon Valley Bank and Signature Bank.

Quoted from Bitcoin.com, Monday (10/4/2023), Binance had difficulty finding a US banking partner based on a Wall Street Journal report. Currently, Binance US customers have been notified “certain USD deposit services will be temporarily unavailable”. Binance US said it is switching to a new banking partner and services will continue once the process is complete.

However, according to sources, Binance is facing challenges in finding banking partners. The report states Binance US allegedly attempted to establish connections with certain banks after the collapse of three crypto-friendly US banks.

Sources said Binance US had been unsuccessful in establishing direct banking relationships with banks including Cross River Bank, a New Jersey-based lender that services several crypto and financial technology firms, and a customer of Bancorp Inc, a Pennsylvania-based regional bank in recent months.

A Binance US Spokesperson stated, “We are working with several US-based banking and payment providers and are continuing to forge new partners while enhancing internal systems to create a more stable fiat platform and offer additional services.”

It is uncertain whether other crypto businesses are facing similar problems finding banking partners, but cryptocurrency exchange Bittrex recently closed operations in the US. Citing surveillance, over-regulation in the US as reasons for the custodial.

On March 27, 2023, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance Holdings Ltd, the US parent company of Binance, alleging violations of derivatives and trading rules.