Bybit, a well-known crypto exchange, has declared that the acceptance of USD deposits via bank transfer has been put on hold. This action was taken due to the suspension of services by one of their partner companies. According to a statement made on a Saturday, the exchange claimed that this would be in effect until further notice.
In addition, Bybit also stated that withdrawals via wire transfer (including SWIFT) will be put on hold starting Mar 10, 2023, due to the same endpoint processing partner. Users who want to withdraw via these methods are advised to do so before midnight UTC on Mar 10, 2023. However, other deposit and withdrawal methods are still available, such as purchasing cryptocurrencies through credit cards on the One-Click Buy page.
Bybit has promised to make the user experience more efficient by introducing an Advcash wallet withdrawal service. Furthermore, Bybit has taken significant steps to ensure the safety of all user funds. Therefore, users can be assured that their USD assets held in Bybit are secure.
It is essential to note that Bybit did not reveal the identity of the partner who is experiencing outages. Furthermore, this announcement follows a similar one made by Binance, the world’s largest crypto exchange, which temporarily suspended USD withdrawals and deposits for international customers in early February.
Growing Regulatory Scrutiny
Last year’s catastrophic collapse of the crypto exchange FTX has drawn the attention of US regulatory agencies, prompting banks and other financial institutions to reconsider their involvement with crypto and digital asset firms.
Moonstone Bank, a digital bank that caters to high-net-worth individuals, recently disclosed that it would be exiting the crypto space and shifting its focus to community banking. The move was motivated by recent industry developments and increased regulatory scrutiny.
“The decision to change strategy is a result of the impact of recent events in the crypto assets industry and the consequent changing regulatory environment concerning crypto asset businesses,” stated Moonstone Bank.
Signature Bank, Binance‘s banking partner, is also looking to decrease its crypto exposure. The bank recently raised transaction minimums for dollar transfers, stating that it would only process trades for users with USD bank accounts over $100,000.
In the same vein, Silvergate has announced that it will be unable to submit its annual 10-K financial report to the SEC on time, and it is evaluating its ability to remain in business. This announcement has prompted an exodus of crypto firms from the bank.