Crypto withdrawals in USD no longer possible on Silvergate Bank
- Silvergate Bank has ended its partnership with Binance, as it discontinues deposits and withdrawals.
- The bank could be reconsidering its business with Binance due to the exchange’s legal issues.
- However, users of Binance.US, the exchange’s branch based in the US are not affected.
Silvergate Bank may have ended its partnership with cryptocurrency exchange Binance, according to an email from the exchange giant. The report revealed that the bank will stop processing deposits and withdrawals in U.S. dollars.
The email is circulating on Reddit and Twitter notes that the deposits and withdrawals through Silvergate will be discontinued on Friday. The email added,
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Rest assured, we are working hard to provide an alternative USD solution.
Binance has also assured users that the platform is working to provide alternative USDD solutions. However, the exchange declined to comment further about the situation when a follow-up email was sent.
Silvergate distancing itself from Binance
Binance introduced the Silvergate funding option to users back in December. But it’s not clear why Silvergate decided to back out from the partnership. But it could be related to the legal issues Binance is currently facing. According to a recent report by Bloomberg, the Commodity Futures Trading Commission (CFTC), the Internal Revenue Service, and the U.S. Department of Justice are investigating Binance. However, none of the authorities have alleged any wrongdoing during their investigation.
Another reason could be the bank’s recent partnership with Facebook’s stablecoin project Diem. The California-based bank is the exclusive issuer of Diem’s stablecoin. As a result, it could be looking to distance itself from Binance following its recent regulatory issues.
Some Binance users have expressed concerns about the development, especially those who are actively using Silverback for deposits and withdrawals to fiat currency. Some have also complained that their withdrawal request has been stuck for several days.
Other users have also complained in multiple posts that they have been unable to withdraw in USD for the past few weeks.
Binance.US not impacted
The situation seems not to have any impact on users of Binance.US, which caters exclusively to US-based clients and customers. Confirmation also came from the U.S. branch of the exchange. “We are proud to continue working with @SilvergateBank as one of our banking partners,” the exchange pointed out.