04-10-2023 icon

Binance.US Incapable Of Getting Financial Institution Associates In The US Region: Report

By Lucy Adegbe
Binance.US software

Binance.US, the United States division of the worldwide digital currency trading platform Binance, has been confronted by a major setback in building a current bank associate to assist in crypto on and off-ramp for its customers in the region, as published by the Wall Street Journal on April 8.

The recently reported mishaps of Silvergate and Signature Bank have rendered Binance.US deficient of local financial assistance, counting on middleman financial services to save reserves for it, the WSJ disclosed, referencing knowledgeable parties.

So far, the supervisory clampdown on banks with digital currency customers has been another determinant intensifying the trading protocol’s challenges. 

Last month, the United States Commodity and Futures Trading Commission (CFTC) charged Binance Corporation and its owner, Changpeng “CZ” Zhao for suspected exchange infringement. The digital currency trading platform has been a major target of the commission’s scrutiny in the past two years.

Binance.US requires a banking solution that would intervene to store its customers’ United States dollars, however, current trials to ally with banking institutions like Customers Bancorp have proved abortive.

As currently noted, the trading protocol is storing its client’s reserves through the Fintech protocol Prime Trust. According to a mediator for Prime Trust, all monetary holdings gotten from customers are held via its financial service associates.