Binance.US, the U.S. arm of the global cryptocurrency exchange Binance, has been struggling to find a new bank partner to provide fiat on-ramps and off-ramps for its customers in the country.
According to a report by the Wall Street Journal on April 8, recent failures of Silvergate and Signature Bank left Binance.US without banking services, and the regulatory crackdown on banks with crypto clients has only added to the exchange’s difficulties.
Binance.US requires a bank to directly hold its customers’ US dollars, but recent attempts to establish direct banking relationships have failed. Currently, Binance.US is holding customer funds via Prime Trust, and the exchange is transitioning to new banking and payment service providers.
Banks in the UK are also moving away from accepting crypto clients, requesting more documentation and information about how they monitor clients’ transactions.
