Bybit, one of the world’s largest cryptocurrency exchanges, has announced the suspension of US dollar deposits via bank transfer due to a “partner outage”.
“Due to service outages from our endpoint processing partners, we have temporarily suspended US dollar deposits via wire transfers (including SWIFT) until further notice,” the crypto exchange said in an announcement on Saturday. .
Bybit added that withdrawals via wire transfers (including SWIFT) will also be suspended from March 10, 2023 due to the same endpoint processing partner. It states, “If you wish to withdraw using these methods, please do so by March 10, 2023 at midnight (midnight) UTC.”
Other deposit and withdrawal methods remain operational, the exchange said, and users can purchase cryptocurrencies using credit cards on the one-click purchase page. The Dubai-based cryptocurrency exchange also said it will launch Advcash wallet withdrawal service to facilitate user he experience.
“You can rest assured that your USD assets on Bybit are safe and secure,” Bybit said. “Our platform takes strict security measures to ensure the safety of all user funds.” Bybit has not disclosed the identities of the partners experiencing the outage.
The outage comes a day after troubled crypto bank Silvergate revealed plans to shut down its digital asset payment network, claiming the shutdown was a “risk-based decision.” This network was one of the major entry and exit points for USD in the American cryptocurrency industry.
It’s worth noting that Binance, the world’s largest cryptocurrency exchange, recently made a similar announcement. In early February, the exchange announced it would temporarily suspend US dollar withdrawals and deposits for international customers.
Banks Seek to Reduce Crypto Exposure Amid Regulatory Crackdown
The devastating collapse of crypto exchange FTX last year has angered U.S. regulators and put pressure on banks and other financial institutions to reconsider their exposure to cryptocurrencies and digital asset companies.
As reported, Moonstone Bank, a digital bank focused on serving high net worth individuals, exited the crypto space earlier this year, refocusing on its role as a “community bank.” I made it clear that I will hit the. He cited recent developments in the industry and subsequent increased 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 industry and the consequent changes in the regulatory environment related to the crypto business.”
Similarly, Binance banking partner Signature Bank is looking to reduce its exposure to cryptocurrencies. Just recently, the bank announced that it would increase the minimum transaction amount for dollar transfers and only process transactions by users with US dollar bank accounts over $100,000.
Meanwhile, earlier this week, Silvergate announced that it had failed to timely file its annual 10-K financial report with the SEC and is assessing its ability to continue doing business. Banks have seen crypto companies leak following the announcement.