Bybit, a cryptocurrency exchange based in Dubai, has temporarily suspended accepting bank transfers in United States dollars due to “service outages from a partner.” However, users can still withdraw their funds through wire transfers until March 10.
According to the March 4th blog post, Bybit declared the suspension of USD deposits made by wire transfer (SWIFT) and wire transfer for U.S. banks, citing the unavailability of these services. Users can expect to access Advcash withdrawals soon through the exchange. The option to deposit USD via Advcash Wallet or credit cards will remain available.
Although Bybit claims that all client monies are “safe and secure,” the exchange recommends that investors withdraw USD “as soon as possible to minimize inconveniences.” According to the company, the halt is due to a service failure from its partner, and it is working to restore service as soon as possible.
Bybit & Genesis Global Trading
Genesis Global Trading’s Chapter 11 bankruptcy on January 20 has impacted Bybit and other corporations involved in crypto lending. Bybit CEO Ben Zhou said the business had a $150 million exposure through its investment arm, Mirana Asset Management. Zhou said $120 million of the funds had already been collateralized and liquidated.
Zhou emphasized that Bybit keeps all client money separate, and Bybit does not use Mirana in its earn product Silvergate Bank ended the digital asset payment network citing risk. Suspension of the network follows an announcement by one day.
U.S. Banks Reduce Exposure To Crypto
Bybit is acting due to regulatory constraints and market outflows after the FTX cryptocurrency exchange collapsed unexpectedly in November 2022.
These incidents have caused U.S. institutions to minimize their exposure to cryptocurrency assets, notably Binance’s February ban on bank transactions in U.S. dollars.
Binance’s SWIFT transfer partner, Signature Bank, declared in January that it would only handle trades from individuals with U.S. dollar bank accounts worth more than $100,000. Signature Bank previously said that it would be severely reducing crypto deposits.
Despite the crypto industry’s current challenges, Bybit is optimistic about its future. The company believes the current market conditions will create new opportunities for innovation and growth. It is committed to providing its users with a safe and secure trading environment.
Bybit halted USD bank transfers due to a partner’s service outage. Wire transfers are still available for customer withdrawals until March 10th.
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Genesis Global Trading has exposed Bybit. We advise customers to withdraw USD quickly to minimize interruptions. The stoppage coincides with an effort by U.S. banks to restrict their exposure to digital assets.