Dubai-based Bybit is the most recent cryptocurrency exchange to halt wire transactions in dollars, citing partner interruptions.
Due to “service outages from a partner,” Dubai-based cryptocurrency exchange Bybit has stopped deposits in US dollars made through bank transfers. Wire transfers can be used to withdraw money until March 10.
The cryptocurrency company stated that “USD deposits via Wire Transfer (SWIFT) and Wire Transfer (For U.S. banks) are no longer available”. in a blog post from March 4. Users can also continue to deposit USD using their credit cards or the Advcash Wallet as an alternative.
The exchange announced that Advcash Wallet withdrawals would soon be available. Nonetheless, despite Bybit’s assurances that user funds are “safe and secure,” it advises customers who intend to withdraw USD to do it “as soon as possible to avoid potential disruptions.”
One of the businesses having exposure to the cryptocurrency lender Genesis Global Trading, which declared bankruptcy under Chapter 11 on January 20, is Bybit.
The exposure totals $150 million, according to Ben Zhou, Head of Bybit’s investment division Mirana Asset Management. Zhou said that $120 million of the money had already been liquidated and were collateralized.
Additionally, he emphasized that Bybit’s earn products do not use Mirana and that all client monies are placed into separate accounts. The suspension comes just a day after Silvergate Bank announced plans to stop operating its payment network for digital assets, citing a “risk-based decision” as the reason for the termination.
The network served as a significant on- and off-ramp for USD in the US cryptocurrency market. U.S. institutions are being forced to lessen their exposure to bitcoin assets due to regulatory pressure and market withdrawals following the abrupt collapse of cryptocurrency exchange FTX in November 2022.
Binance stated in February that it would temporarily stop accepting bank transactions of USD. The exchange had previously stated in January that only individuals with U.S. dollar bank accounts over $100,000 would be permitted to execute trades using its SWIFT transfer partner, Signature Bank. Prior to this, Signature Bank indicated it would substantially reduce cryptocurrency deposits.
