Binance and Silvergate Bank have ended their relationship. This means that the customers of the exchange can no longer make USD deposits through this bank. Binance announced on Wednesday. The exchange stated that effective June 11th, USD deposits coming through Silvergate would not be processed through an email to its clients.
The email further stated that anyone who deposits after the effective date would get back their money. However, the amount they receive could be lower due to the various banking charges incurred in the transaction. The exchange also told its clients that it was looking for an alternative.
This problem doesn’t seem to have started just now, though. Customer complaints on social media platforms point to a problem that has last for months.
As far back as March, users of the service were complaining of extensive delays. Back then, one Binance user complained that his deposit was three weeks in, and it had not yet been reflected in his account.
The termination of the relationship between the two institutions have not caused any alarm, though. That’s large because customers still have multiple options to deposit and withdraw their crypto. Some of the options that customers still have at their disposal include local gateways, cards, and peer-to-peer trading.
Binance customers can also deposit other currencies such as Euros through other banks. So far, information is scanty on what could have caused the termination of the relationship between the two entities. Neither the crypto exchange nor Silvergate have made public the reasons for the split.
This is the second time in days that Binance is making news. It was recently blocked by Chinese search engines alongside other major exchanges.