Crypto exchange Kraken has decided to withdraw from using Signature Bank for some financial transactions.
This is because the bank appears to have been making changes towards its crypto-exchange or cryptocurrency trading customers for months.
Kraken and the decision to withdraw from using Signature Bank for crypto transactions
According to reports, crypto-exchange Kraken has decided to withdraw from using Signature Bank.
Basically, Kraken has reportedly notified its users via email telling them that its non-business customers will no longer be able to make dollar deposits or withdrawals using Signature.
Specifically, deposits will be eliminated on 15 March, while withdrawals will end on 30 March.
This decision stems from the fact that the bank is making changes toward those who deal in cryptocurrencies.
And indeed, Signature Bank had already anticipated that as of 1 February it would no longer support any of its crypto-exchange customers to buy and sell amounts below $100,000.
Not only that, during December, Signature Bank had also stated that it would reduce its exposure to the crypto sector, though not eliminate it altogether.
Kraken and reducing crypto-exchange dependence on Signature Bank
Apparently, Kraken is seeking to reduce its dependence on Signature Bank for its financial transactions, without yet specifying which banking institution will take its place.
Signature has banned SWIFT transactions below $100,000, aiming to reduce cryptocurrency-related deposits by up to $10 billion as the industry faced headwinds last year.
But Kraken is not the first to act in this way. Even Binance as early as late January 2023, had warned its users to stop USD bank transfers with amounts below $100,000.
Not only that, just like Kraken, Binance had also said it was looking for a new banking partner.
The departure of crypto companies from Silvergate Bank
Something different is the situation that crypto companies are experiencing with respect to Silvergate Bank. And indeed, recently Coinbase, Paxos, Crypto.com, BitStamp, Gemini, and others are acting to terminate their partnerships with the bank.
This time, the reason for these decisions is Silvergate Bank’s probable insolvency, stemming from its delay in sending its annual report to the US SEC.
That situation led the bank to see its shares plummet to $5.72, down from $13.53 last Wednesday.
