Bybit noted that due to the same end-point processing partner, withdrawals made via Wire Transfer (including SWIFT) would likewise be stopped as of Mar. 10, 2023. Please make any withdrawals using these methods by March 10, 2023, 12 AM (midnight) UTC, it said.
The exchange noted that users can purchase cryptocurrency with credit cards on the One-Click Purchase website and that other deposit and withdrawal options are still available. In order to streamline the user experience, the Dubai-based cryptocurrency exchange also announced that it would introduce an Advcash wallet withdrawal service.
Banks work to limit exposure to cryptocurrency
According to Bybit, USD funds held in the service are safe and secure. To guarantee the security of all user payments, our platform has strict security measures in place. Bybit omitted the partner’s name who was encountering problems.
The suspension comes just a day after troubled cryptocurrency bank Silvergate announced plans to stop operating its payment network for digital assets, claiming the decision was made “risk-based”. The network was one of the majors on- and off-ramps for USD in the American crypto industry.
- The Dubai-based cryptocurrency exchange also introduce Advcash wallet withdrawals.
- Moonstone Bank is leaving the cryptocurrency industry and shifting its attention to a “community bank” position.
- Shifting regulatory landscape pertaining to crypto asset enterprises is reflected in the change in strategy.
Binance announced at the beginning of February that it is momentarily stopping overseas customers from making withdrawals and deposits in U.S. dollars.
Regulating bodies in the US are furious about the catastrophic collapse of cryptocurrency exchange FTX last year, which has prompted banks and other financial institutions to re-evaluate their exposure to crypto and digital asset companies.
As previously mentioned, Moonstone Bank, a digital bank specializing in serving wealthy clients, announced earlier this year that it is leaving the cryptocurrency industry and shifting its attention to a “community bank” position.
The impact of recent developments in the crypto asset sector and the resulting shifting regulatory landscape pertaining to crypto asset enterprises are reflected in the change in strategy, according to Moonstone Bank at the time.
Similar efforts have been made by Signature Bank, Binance‘s banking partner, to lessen its exposure to cryptocurrencies. The bank only recently announced that it will only process trades from users with USD bank accounts exceeding $100,000 and increased the transaction minimums for dollar transfers.
Silvergate, however, stated earlier this week that it will not be able to submit its annual 10-K financial report to the SEC by the deadline and that it is assessing its capacity to continue operating. The announcement caused a crypto industry exodus from the bank.
