Binance’s US Division Is Having Problems to Find Partners in US

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According to an article published by the Wall Street Journal on April 8, the United States branch of Binance is facing difficulties in finding a new banking partner to act as a fiat on-ramp and off-ramp for its clients in the country.

The recent failures of Silvergate and Signature Bank have left Binance.US without banking services, forcing it to rely on middleman banks to hold its funds. This is due in part to the regulatory crackdown on banks that work with cryptocurrency clients.

In March, the US Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance Holdings and its CEO, Changpeng “CZ” Zhao, for alleged trading violations, and the exchange has been under investigation by the CFTC since 2021.

Binance.US is seeking a bank to directly hold its clients’ US dollars, but its efforts to establish direct banking relationships with Cross River Bank and Customers Bancorp have been unsuccessful.

The lack of a direct bank has impacted Binance.US customers, and the exchange has stated that it will be transitioning to new banking and payment service providers over the next few weeks, which may temporarily impact some U.S. dollar deposit services.