Binance.US, a popular cryptocurrency exchange, is facing difficulties in partnering with a bank to deposit its customers’ money due to the recent banking chaos and increased regulatory scrutiny on the crypto industry. According to a report by the Wall Street Journal, Binance.US used to send its customers’ cash to Signature Bank or Silvergate Capital, but the failure of these crypto-friendly banks has forced crypto firms to search for new banking partners.
Binance.US attempted to partner with Customers Bancorp and Cross River Bank but was unsuccessful. This comes after the Commodity Futures Trading Commission (CFTC) sued Binance’s CEO, Changpeng Zhao, and three entities that operate the Binance platform for violating several Commodity Exchange Act (CEA) and CFTC regulations. The CFTC also sued Binance’s former chief compliance officer, Samuel Lim, for helping with the violations.
Despite the increasing regulatory crackdown on crypto firms, Bitcoin and Ethereum, the two major cryptocurrencies, have shown a solid recovery in 2023. Bitcoin prices have increased by over 70% year-to-date, while Ethereum has risen by about 30%. Binance’s digital currency, Binance Coin, has also seen an increase of more than 28% so far in 2023.