- OKCoin is working on an alternative USD payment channel to allow customers’ deposits in real-time, according to CEO Fang.
- Market analysts anticipate other crypto exchanges could announce similar notices in the coming days if banks take longer to accept digital assets payments.
The crypto-USD liquidity continues to shrink following the collapse of Silvergate Capital, Silicon Valley Bank, and Signature Bank. In the latest development, the OKCoin cryptocurrency exchange has confirmed that it has lost its USD pipeline following the collapse of Signature Bank. According to OKCoin CEO Hong Fang, through a series of tweets, Signature Bank was its primary USD route to process customers’ transactions. However, Fang has confirmed that the OKCoin team is working on an alternative channel for customers to process USD transactions.
USD deposit by wire and ACH has been immediately paused. We don’t want your deposit to get stuck. Over-the-counter services will be temporarily paused too (aka quick-buy and recurring-buy)….Our team is working very hard on alternative channels and solutions in real-time,
Meanwhile, Fang assured OKCoin customers that all their funds are safe and USD withdrawals are not affected. Moreover, EURO deposits have not been affected, and crypto operations remain unscathed by the recent crisis.
What has not changed @Okcoin:
– All corporate and all customer funds are safe
– Order-book trading not affected
– EU deposit not affected
– USD withdrawal not affected. The processing pace will be subject to bank operation
– Crypto withdrawals and deposits still intact— Hong (@hfangca) March 13, 2023
Notably, Fang assured OKCoin customers that the exchange had no exposure to the Silicon Valley Bank (SVB) collapse. However, she further noted that the exchange was able to manage the Silvergate situation without service interruptions.
Are other exchanges affected like OKCoin?
Centralized cryptocurrency exchanges are expected to feel the heat of SVB, Silvergate Capital, and Signature Bank’s failure in the coming weeks. Moreover, other banks in the United States are cautious about providing crypto-fiat on and off-ramp services following increased regulatory scrutiny. Nonetheless, the Biden administration is keen to help its economy compete with other leading global economies.
Previously, Coinbase Global announced that it is facilitating USD transactions with other banking partners. Nonetheless, the company reported a $240 million cash exposure in the defunct Signature Bank.
However, following FDIC’s move to make SVB and Signature depositors whole again, Coinbase Global has indicated its customers’ cash is well protected.
Kraken cryptocurrency exchange announced earlier today that its USD funding would continue uninterrupted due to its diversity in the banking sector. Kraken CEO Jesse Powell indicated that the exchange had no material exposure to Silicon Valley Bank.
Over the weekend, the Bittrex crypto exchange announced that it has begun transitioning deposits made by its customers to other partner financial institutions. The company announced;
Because Bittrex maintains accounts with various financial institutions, we do not anticipate any impact on our customers’ ability to deposit and withdraw fiat funds to and from their Bittrex accounts,
Gemini cryptocurrency exchange has also announced that the collapse of Signature Bank did not affect its business operations despite being its close banking partner.
1/ It’s very sad to hear the news about Signature Bank. They have been incredible partners to Gemini and our industry for the better part of a decade.
We have zero customer funds and zero Gemini dollar (GUSD) funds held at Signature Bank.
— Gemini (@Gemini) March 13, 2023
Subscribe to our daily newsletter!
No spam, no lies, only insights. You can unsubscribe at any time.
