Bybit Suspends USD Deposits, Wire Transfers, and Withdrawals Discontinuation Looming
Singapore’s headquartered crypto exchange, Bybit, declared on March 4 that it was suspending US dollar-denominated deposits. The notice reveals that Bybit was mulling discontinuing wire transfers and withdrawals from March 10.
Bybit said the US dollar deposits ban would affect national and international users. The Bybit statement read that the temporary ban arose from the discovery of repeated service outages experienced by the end-point processing partner. It made it inevitable to suspend deposits via Swift and wire transfers. The crypto exchange is set to extend the ban scope to withdrawals by March 10.
Bybit Ban Prompted by Silvergate Crisis
Nevertheless, the notice assured users they could utilize their wallet addresses to execute withdrawal and deposit transactions. Similarly, Bybit users could fund purchases via payment options and credit cards.
Bybit’s decision echoes Binance’s move announced a month ago that the leader in trading volume of digital assets exchange would ban dollar transfers. The decision by Binance coincided with the Silvergate Capital Corp crisis. The California-based crypto bank sent signals of seeking Chapter 11 bankruptcy protection. The crisis engulfing Silvergate is causing shockwaves within the crypto industry, given the massive interlink of crypto firms involved.
The crisis likely to affect crypto firms with exposure to Silvergate Capital Corp compelled Bybit to assess its capability to sustain operations. The discovery of the Silvergate Capital crisis prompted reconsidering its annual 10-K report, delaying its filing to the Securities and Exchange Commission (SEC).
Bybit Replicates Binance Action to Suspend US Dollar-Denominated Deposits
The lead executive of research and strategies at Matrixport, Markus Thielen, revealed that the Bybit decision mirrors the actions undertaken by Binance. The move would create a huge impact on the crypto market.
Thielen observed that the previous suspension of USD transfers by Binance prompted a 10% decline in bitcoin prices. The effect occurs since Binance has a massive impact that other crypto exchanges.
Bybit is set to replicate Binance by halting all USD transfers starting on March 10. The decision undertaken by Bybit would hinder the execution of wire transfers initiated by nationals and SWIFT for its international users. Thielen regretted the move as it deliberately cut off the US from the crypto operations and exchanges.
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