First Binance then On Saturday, the Bybit crypto exchange announced the suspension of U.S. dollar (USD) deposits for both international and national customers due to service outages with their end-point processing partner.
Bybit’s Decision Came After Binance Made a Similar Decision
Withdrawals will be stopped from March 10th onward as well; however, users can still deposit and withdraw using wallet addresses or fund purchases through credit cards or other payment methods. This temporary measure is necessary to ensure the safety and reliability of funds on our platform going forward until further notice.
Bybit’s spokesperson proclaimed that the payment gateway disruption is restricted in its reach and does not involve other fiat or cryptocurrencies or account funding channels. Fortunately, customers can still purchase cryptocurrency with their debit/credit cards through other options. The spokesperson said that their team continues seeking alternative solutions and will ensure their users are promptly updated on any further developments regarding this issue.
Last month, Binance – the world’s foremost digital assets exchange based on trading volume – suspended USD transfers. Additionally, Silvergate Bank in California (which offers financial services to cryptocurrency firms and exchanges) declared that it might not be able to keep running as a business going concerned while postponing its annual report filing with the SEC. Consequently, Bybit has made its move around this time of crisis.
These Decisions of Crypto Exchanges Have a Great Impact on the Market
Markus Thielen, the chief of research and strategy at Matrixport crypto solutions provider, declares that Bybit following Binance’s example amidst the Silvergate crisis is a significant occurrence for the virtual currency marketplace. “When Binance suspended USD transactions in January, Bitcoin costs experienced an -10% decrease,” he mentioned in his note to clients. He continued saying, “Binance has much more influence than any other exchanges, yet now even Bybit will cease accepting USD payments as of March 10th, preventing SWIFT (international) and Wire transfers (local). This action indeed qualifies as a major event.”
