Binance.US, the popular Binance Exchange’s American branch, was experiencing significant operational challenges due to a lack of a banking partner. This latest setback adds to a string of recent setbacks for the exchange.
According to a Wall Street Journal report from April 8, Binance.US has been having difficulty finding a banking partner to handle its clients’ funds. The exchange has been working hard to find a new bank partner to help its clients transfer fiat currency in and out of its platform.
Due to the recent failures of Silvergate and Signature Bank, the exchange is now reliant on intermediary banks to store funds on its behalf.
Binance.US customers have been impacted by the lack of a direct banking partner. In a recent update, the exchange announced that it would be transitioning to new banking and payment service providers in the coming weeks. It did, however, state that the transition would have a temporary impact on some of its US dollar deposit services.
According to the Wall Street Journal, Binance.US has been storing its customers’ funds with Prime Trust LLC, a FinTech firm specializing in cryptocurrency services. Any funds received from Binance.US clients, according to a Prime Trust spokeswoman, are kept in the company’s network of banking partners.
The Commodity Futures Trading Commission recently sued Binance Holdings Ltd., the global affiliate of Binance US. The suit was filed for allegedly violating regulations and rules aimed at preventing financial crimes in the United States.
Although Binance denied any wrongdoing, the legal action may have made it more difficult for Binance.US to secure banking partners. Furthermore, the regulatory landscape for cryptocurrency in the United States has become more complex in recent years, which may have contributed to the exchange’s difficulty in finding a banking partner.
BNB’s daily timeframe chart indicated that it has faced difficulties in recent weeks. As of this writing, BNB was trading at around $310, a slight loss of less than 1%. While BNB was still trading above its short and long Moving Averages (yellow and blue lines), if the decline continues, it may fall below these averages. Furthermore, the Relative Strength Index (RSI) line indicated that the current trend for BNB was bearish.
Furthermore, at the time of publication, investors expected Binance Coin to fall further. According to Coinglass funding rate data, the dominant positions on most exchanges were short, indicating that investors were bearish on BNB’s prospects. Although there were some long positions, the majority of market sentiment was carried by shorts at the time of writing.