OKCoin Temporarily Suspends USD Deposits Following Silicon Valley Bank Collapse

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Key takeaways:

  • Due to Signature Bank’s closing, OKCoin is momentarily unable to accept USD deposits from customers.
  • Okcoin withdrawals made in dollars are unaffected by the stoppage.

The U.S. subsidiary of cryptocurrency exchange OKX had no exposure to the defunct Silicon Valley Bank, according to a statement from Okcoin CEO Hong Fang on March 13. (SVB). But according to Fong, the regulatory move against Signature Bank, Okcoin’s main partner for dollar-based customer transactions, has “immediately halted” the company’s U.S. dollar wire and ACH deposits.

A significant financial institution called Signature Bank was shut down on March 12 by New York state regulators for fiat-crypto on-ramping, claiming a systemic risk exception in the wake of SVB’s demise. Fang also stated that the quick buy and recurring buy features would be briefly halted in addition to the suspension of dollar deposits. Additionally, according to Okcoin, “crypto transactions by credit card” and “trading USD-crypto trading pairs” are subject to a halt.

Fang emphasized that “all corporate and all customer funds are secure” and “USD withdrawal is not impacted” in response to user questions. The speed of the procedure will depend on bank operations. All cryptocurrency deposit and withdrawal features, including those of stablecoins linked to the dollar, are still available. Additionally, it appears that the halt only applies to deposits made in dollars because deposits made in other fiat currencies, such as euros, are unaffected.

“Our team are working very hard on alternative channels and solutions in real-time We’ve been through much worse times since our inception. If this weekend has told us anything, it’s the significance of the future that we are building. Our commitment to you hasn’t changed either.”

The news serves as a stark reminder of the difficulties working with conventional banking systems can present for cryptocurrency exchanges. Even though the sector has advanced significantly, there has been a lot to do in recent years to ensure that markets can run without interruptions and problems.

Many cryptocurrency businesses, including Coinbase, Celsius, and Paxos, who have since revealed that they held balances in the bank, relied heavily on the crypto-friendly Signature Bank as a partner. Federal authorities in the United States have declared that depositors at Signature Bank will get their entire balances after the bank closes.

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