Bybit suspends US dollar deposits paid through banks

On March 4, Bybit announced that due to the service interruption of partners, Bybit has suspended the US dollar deposit value paid through banks, and no longer can use the US dollar deposit value through wire transfer (SWIFT) and wire transfer (Bank of America). Bybit did not disclose in the announcement whether the bank partner is Silvergate.

Interpretation of this information:

The message from Bybit, a crypto derivatives exchange, stated that it has suspended the US Dollar deposit function for its users due to a service interruption of its partner. This means that Bybit users can no longer use the US Dollar option to deposit funds into their accounts. The company has also informed that users will not be able to use the US Dollar deposit option through wire transfer (SWIFT) or Bank of America.

The decision to suspend US Dollar deposit functions has been met with concern by users. The announcement did not reveal the name of the bank partner responsible for the service interruption. This has led to speculation that it could be Silvergate, a well-known crypto-friendly bank. It is worth noting that Bybit has not confirmed any bank partner as responsible.

It is unclear why the bank partner has experienced a service interruption, but the assumed interruption could be due to the increasing scrutiny from regulators. Bank partners of crypto exchanges have come under more scrutiny recently with many exchanges struggling to maintain banking relationships.

Apart from the service interruption, Bybit has also faced regulatory issues lately. The exchange has already received warnings from the UK Financial Conduct Authority (FCA), Japan’s Financial Services Agency (FSA), and the Ontario Securities Commission (OSC) for not having regulatory approval to operate in these jurisdictions.

In conclusion, Bybit’s decision to suspend its USD deposit function is likely to impact its users, especially those who prefer to use fiat to invest in cryptocurrencies. The lack of transparency regarding the service interruption also leaves users in limbo. It remains to be seen how long the service interruption will last and if Bybit will seek alternative banking partners to enable USD deposits. This development highlights the need for crypto exchanges to have robust banking relationships that can withstand the ever-evolving regulatory landscape.