The American branch of the Binance crypto platform is experiencing some relationship difficulties with the banking sector. With the latter, she can no longer establish a stable partnership. Several causes explain the situation.
Binance US scrambles to find a new banking partner
Binance US seems to be still struggling with its banking woes. Since it was stabbed by Signature Bank, which dropped it before sinking, the company has not been able to establish any relevant banking collaboration. This is revealed in particular some information disclosed on Saturday April 8 by the Wall Street Journal.
According to the latest news, all attempts by the crypto firm to find a replacement at Signature Bank have failed. It is in vain indeed that the company tried to establish a collaboration with banks like Cross River Bank and Customers Bancorp. Apparently, no bank wants to engage with Binance US. And this refusal seems a little more global.
Binance US Regulatory Context and Challenges
According to the sources, this situation is largely linked to the earthquake that shook the banking ecosystem recently. A crisis that led to the successive disappearance of banks favorable to the crypto industry such as Silvergate, Signature and Silicon Valley Bank.
In fact, Binance US finds itself faced with a situation where it no longer has an ally in the banking industry. This, in a context where the regulatory noose has tightened around companies in the sector, suddenly discouraging them from engaging with crypto firms. And the fact that Binance has been in the crosshairs of regulators since 2021 is not likely to help matters.
In absolute terms, the situation could change if the latter reviewed their copy and let go of the regulation of crypto companies. For now, Binance US is content to use an intermediary to host its users’ funds. This role is performed by Prime Trust, a financial technology company for Binance US.
A company spokesperson said that despite these challenges, the group is working “to integrate new partners while improving internal systems in order to create a more stable fiat platform and to offer additional services”. Whether this is enough for Binance to continue offering its services in the United States remains to be seen.
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