OKCoin Halts USD Deposits on Platform Temporarily in Response to Signature Bank’s Suspension
OKCoin, the parent company of OKX exchange, announced on March 13th that it will temporarily suspend its USD deposit service on the platform. The decision was made to protect users and prevent any potential complications.
Hong Fang, the CEO of OKCoin, stated that all customer funds are safe and that the suspension only affects USD deposit services. The company’s tweet also revealed that the temporary pause was due to issues with their primary USD bank, Signature.
What’s temporarily paused @Okcoin:
– USD deposit by wire and ACH has been immediately paused. We don’t want your deposit to get stuck
– Over-the-counter services will be temporarily paused too (aka quick-buy and recurring-buy)
— Hong (@hfangca) March 13, 2023
This announcement comes amidst growing concerns in the cryptocurrency market over liquidity issues between crypto and fiat currencies. Earlier this week, Silvergate, a platform used to transfer USD to cryptocurrency exchanges, also announced that it would be temporarily closed. The Signet payment network of Signature also ceased operations on the same day.
OKCoin is headquartered in the US and focuses mainly on converting cryptocurrencies to USD. On the other hand, OKX is a top-three cryptocurrency exchange by trading volume. It is worth noting that the exchange token, OKB, has not been affected by this suspension. In fact, OKB’s value increased by 9.5% in the last 24 hours and is currently trading at $43.4 USD with a market capitalization of $2.53 billion, according to CoinGecko.
Despite the temporary pause in USD deposits, OKCoin has assured its customers that all corporate and customer funds are safe, and order-book trading, EU deposits, and USD withdrawals have not been affected. The processing of USD withdrawals may be subject to bank operation, but crypto withdrawals and deposits remain intact.
OKCoin has been through worse times in the past, and the company remains committed to its customers. The CEO’s tweet also highlights the significance of building a future in the crypto world, and the importance of owning one’s own keys and being their own bank.
In conclusion, OKCoin’s temporary suspension of USD deposit services on its platform is due to issues with its primary USD bank, Signature. Despite this, OKCoin’s cryptocurrency exchange token, OKB, has not been affected, and all corporate and customer funds remain safe. OKCoin is currently working on alternative channels and solutions, and more updates will be provided as the situation unfolds.
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