Kraken reduces reliance on Signature Bank for certain transactions

Cryptocurrency exchange Kraken is moving away from Signature Bank to process certain types of transactions due to decisions made by the New York-based banking firm.

As of now, non-corporate clients cannot deposit or withdraw Kraken dollars through Signature.

• As reported by bloomberg law on Wednesday, deposits to Kraken using Signature will cease on March 15, while customers have until March 31 to withdraw from the company.
• The news comes after Signature Bank warned its banking partners in January that it would stop helping its crypto exchange clients process transactions worth less than $100,000. This rule applies to both Binance and Kraken.
• Signature signaled in December that it would start reducing its exposure to the crypto industry, a month after the FTX bankruptcy sparked rampant contagion across the sector.
• One such company is Silvergate Bank, which suffered a bank run in the weeks after FTX’s collapse. The signature is being investigated by US regulators due to certain ties it had to both FTX and its sister firm, Alameda Research.
• Thursday, Silvergate noted that it was experiencing operational problems and would not be able to release its financial report scheduled for March 16. His actions are down 58% up to date.
• Numerous crypto companies have proceeded to cut ties with Silvergate afterwards, including Paxos, Galaxy Digital, Gemini, BitStamp, and Circle.
• coin base and LedgerX also distanced themselves from the firm, replacing Silvergate with Signature Bank.