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Bybit, one of the world’s largest cryptocurrency exchanges, has announced the suspension of USD deposits via bank transfer due to a “service outage from a partner”.
“We have temporarily suspended USD deposits via wire transfer (including SWIFT) due to a service outage from our end-point processing partners,” the crypto exchange said. Said Saturday’s announcement.
Bybit said that withdrawals via wire transfers (including SWIFT) will also be suspended from March 10, 2023, due to the same end-point processing partners. “If you wish to make any withdrawals through these methods, please do so before March 10, 2023, 12AM (midnight) UTC,” it said.
Other deposit or withdrawal methods remain operational, the exchange said, noting that users can buy cryptocurrency with a credit card on the One-Click Buy page. The Dubai-based cryptocurrency exchange also said that it will launch Addcash Wallet withdrawal service to speed up the user experience.
“Please be assured that the USD assets you hold with Bybit are safe,” said Bybit. “Our platform has put in place strict security measures to ensure the safety of all user funds.” Byte did not disclose the identity of the partner who experienced the outage.
The halt comes just a day after beleaguered crypto bank Silvergate revealed plans to shut down its digital asset payments network, claiming the termination is a “risk-based decision”. The network was one of the major on- and off-ramps for USD in the American crypto industry.
It is noteworthy that the world’s largest cryptocurrency exchange Binance has also made a similar announcement recently. Exchange in early February Said that it is temporarily suspending US dollar withdrawals and deposits for international customers.
Banks try to reduce crypto exposure amid regulatory crackdown
cataclysmic The collapse of cryptocurrency exchange FTX Last year attracted the ire of regulatory agencies in the US, pressuring banks and other financial institutions to reconsider their exposure to crypto and digital asset companies.
As informed ofMoonstone Bank, a digital bank focused on serving high-net-worth individuals, revealed earlier this year that it was exiting the crypto space and refocusing on the role of a “community bank”. Will do It cited recent developments in the industry and subsequent increase in regulatory scrutiny as reasons for its decision.
Moonstone Bank said at the time, “The change in strategy reflects the impact of recent events in the crypto asset industry and the changing regulatory environment relating to crypto asset businesses.”
Similarly, Signature Bank, which is a banking partner of Binance, is seeking to hedge its exposure to crypto. More recently, Bank raised transaction minimums for dollar transfers, announcing that it would only process trades by users with USD bank accounts in excess of $100,000.
Meanwhile, earlier this week, Silvergate announced that it will not be able to file its annual 10-K financial report to the SEC on time and is evaluating its ability to stay in business. Bank saw an exodus of crypto companies after the announcement.