Okcoin, a US-based cryptocurrency exchange, has temporarily suspended USD deposits in response to the closure of its primary partner for customer transactions in dollars, Signature Bank. Okcoin’s CEO, Hong Fang, has confirmed that the platform has suspended US dollar wire and ACH deposits due to regulatory intervention by New York state regulators, who closed Signature Bank citing a “systemic risk exception” following the collapse of Silicon Valley Bank (SVB).
As a result, Okcoin has also temporarily suspended several services, including over-the-counter, quick buy and recurring buy functions, crypto transactions by credit card, and trading USD-crypto trading pairs. However, Hong Fang has assured users that all corporate and customer funds are safe, and all crypto deposit and withdrawal functions, including US dollar-pegged stablecoins, remain operational. The suspension appears to be limited to dollar deposits, and other fiat deposit methods like euros are unaffected. Okcoin is working to find alternative channels and solutions, and the suspension is not expected to have a significant impact on crypto transactions. Fang emphasized Okcoin’s commitment to its users and the importance of building a better future.
This incident involving the closure of Signature Bank and its impact on various crypto firms has underscored the importance of transparency and accountability in the crypto industry. It has raised concerns about the potential risks associated with fiat-crypto on-ramping and the need for selecting reliable banking partners. Several crypto firms, including Coinbase, Celsius, and Paxos, have disclosed that they held balances in the bank. However, US federal regulators have assured depositors that they will receive their balances in full post-shutdown. The incident has also highlighted the need for stronger regulatory oversight to ensure the safety and stability of the crypto market. Improved transparency and accountability measures can help promote greater trust among investors and regulators and ensure the long-term sustainability of the crypto industry.
