Bybit has just joined the growing list of exchanges suspending USD transfers.
Bybit will stop accepting USD deposits
Bybit recently announced that USD deposits via wire transfer (for US banks) and SWIFT would no longer be available, saying they had “partner service outages”.
The new changes will take effect on March 10, 2023.
However, users can still make deposits via credit card or Advcash Wallet for USD. The exchange noted that the Advcash option would be available soon.
While Bybit assured its clients that their funds were safe and secure, it urged clients with plans to withdraw USD to hurry to avoid potential disruptions.
Ben Zhou, CEO of Bybit, mentioned that the exposure is up to $150 million through Mirana Asset Management, its investment arm. Zhou added that $120 million of the funds have already been settled and guaranteed.
In addition, all client funds are directed to separate accounts, and Bybit’s earning products do not use the investment arm.
Exchanges are stopping USD transfers
Bybit’s arrest comes amid Silvergate’s decision to halt the payment network for its digital assets, saying the decision was out of the question. Meanwhile, there is a lot of regulatory pressure and market exits after the FTX collapse in November 2022. Therefore, US banks are reducing exposure to crypto assets.
Binance, on February 8, too disrupted all withdrawals and deposits from bank accounts using USD. The exchange did not explain the suspension, only mentioning that 0.01% of its clients were affected.
On March 2, Crypto.com suspended USD transfers through Silvergate. The move raised red flags at firms including Galaxy, Paxos and Circle, which also halted operations, and the bank said it was out of an abundance of caution.
The exchange mentioned that funds transfers made through the bank would be a precaution. It also confirmed to its users that their funds were safe.
