Bybit is a major cryptocurrency derivatives trading platform, boasting a suite of sophisticated trading features and a user base in the millions.
The most recent information indicates that the exchange has temporarily suspended USD deposits via Wire Transfer (including SWIFT) until further notice due to service outages from their end-point processing partner. As a result, withdrawals in USD on Bybit will cease from March 10, 2023 (Saturday).
The temporary disruption to the payment gateway does not affect the use of other fiat currencies, cryptocurrencies, or methods of funding accounts. Notably, users can still use their debit or credit card to buy and withdraw cryptocurrencies with US dollars, but they must do so through alternative channels.
A representative for the company has stated that they will update their users and stakeholders as soon as new information becomes available and that they are strongly encouraging their partners to find other options.
The crypto industry has come a long way to gain access to banks. However, the latest trend is going the opposite way.
Banks and other financial institutions are under increased pressure to reevaluate their exposure to crypto and digital asset companies following the catastrophic collapse of cryptocurrency exchange FTX last year.
Moonstone Bank, a digital bank specializing in serving high-net-worth individuals, announced earlier this year that it is leaving the cryptocurrency space and refocusing on the “community bank” role. New developments in the industry and increased regulatory supervision were cited as reasons for the decision.
Signature Bank, Binance’s banking partner, has also been making similar efforts to lessen its cryptocurrency risk. The bank recently announced that it would only accept trades from customers with USD bank accounts of $100,000 or more, significantly raising the transaction minimum for dollar transfers.
Meanwhile, Silvergate stated earlier this week that it would be unable to submit its annual 10-K financial report to the SEC by the deadline and that it is currently assessing its viability as a going concern. Following the announcement, crypto businesses began to withdraw their funds from the bank.
Clearly, this latest trend will prevent SWIFT and Wire transfers from reaching some leading cryptocurrency exchanges, which is a major red flag for the development of the crypto industry.
The price of Bitcoin, for example, fell by ten percent after the cryptocurrency exchange Binance momentarily halted the transfer of US dollars, triggering an alarm among investors and exchanges throughout the world.