Bybit, a cryptocurrency exchange has announced that US dollar-denominated deposits have been suspended and that withdrawals via bank transfer will be halted. Bybit cited “service interruptions from our end-point processor partner” as the reason behind temporarily suspending dollar wire deposits. Withdrawals scheduled to stop March 10, Bybit stated that customers could still withdraw and purchase cryptocurrency using other methods but did not provide any details about the reason.
Bybit’s move comes as Silvergate Capital Corp., a US lender, starts to unravel. This round-the clock, real-time system was used by many exchanges and investors before it was shut down on Friday. After the collapse of the FTX, the US authorities intensified their efforts to block the crypto sector from accessing traditional banking services.
Binance, the largest cryptocurrency exchange in the world, announced recently that it had temporarily suspended withdrawals and deposits of US dollars through bank accounts. Plans are to resume the service soon.
Bybit and Binance suspended bank transfers to remind users of the problems that the cryptocurrency industry faces in accessing traditional banking services. The industry is still evolving, and cryptocurrency exchanges are exploring other methods for customers to withdraw or purchase digital assets.