Binance Is Searching For New Alternatives In The US
The Binance cryptocurrency platform’s US unit is having problems obtaining a new banking partner in the US. The agreement would allow the corporation to provide a monetary entry and exit door for its consumers in the nation. This crisis, triggered by the failure of some institutions such as Silvergate and Signature Bank, as well as regular attacks by US law enforcement officers on the Changpeng Zhao platform, forced Binance to close.
As a result, Binance.US is in severe need of a bank. For what purpose? To directly hold its consumers’ US cash. Many efforts have been made by Binance, according to Wall Street Journal. Consumers Bancorp and Cross River Bank were two banks interested in forming cooperation.
The US Clients of Binance are Suffering the Consequences of Recent Events
Furthermore, the lack of a direct bank has an impact on Binance.US clients. During the deadlock, Binance issued a status report claiming that “new banking and payment service partners would be named in the coming weeks.” As a reminder, Binance.US now keeps its clients’ cash through the intermediary of the firm Prime Trust, a company recognized in the Celsius bankruptcy filing and also under regulatory scrutiny. In truth, the firm cannot sustain this arrangement.
Another factor influencing Binance is regulatory pressure on crypto-friendly institutions. The challenges in the United States are rising for the crypto world. In March, the Commodities Futures Trading Commission (CFTC) sued Binance and its CEO, Changpeng Zhao, for suspected trading rule breaches and money laundering.
Binance did not Give up and Still Puts up a Fight
In the voice of its spokesman, the world leader in crypto technologies confirmed their persistence in the face of the issue in their report with the Wall Street Journal. “We are collaborating with a number of US-based banking and payment service companies and will continue to onboard new partners while improving our internal infrastructure to provide a more robust fiat platform and offer additional services.”
Relying on intermediate institutions to keep customer funds can be inconvenient and detrimental to the image of centralized exchanges. Despite this, Binance has not run out of resources and is working hard to develop long-term solutions to suit the demands of its US consumers.