OKCoin Exchange Stopped Accepting Dollars Due to the Closure Of Signature Bank

OKCoin Exchange Stopped Accepting Dollars Due to the Closure Of Signature Bank

Crypto exchange OKCoin has suspended the ability for customers to deposit US dollars to the platform due to the collapse of Signature Bank. This was announced on Twitter by the CEO of OKCoin and the president of the OKX exchange, Hong Fang. According to her, the restrictions did not affect the withdrawal function, and the clients’ assets listed on the exchange are safe.

OKCoin is a centralized crypto exchange founded in 2013. The platform is operated by the OK Group, which also launched the OKX exchange in 2017. According to CoinMarketCap, the exchange has a daily trading volume of $6.1 million. It lists six assets: Bitcoin, Ethereum, USDC, USDT, MaimiCoin, and NYCCoin.

On March 12, the US Treasury, the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC) issued a joint statement to close Signature Bank. According to the document, the decision was made due to systemic risks. The top management of the bank was removed from office.

As of December 31, 2022, Signature Bank had total assets of approximately $110.36 billion and total deposits of approximately $88.59 billion. The agency’s announcement stated that all bank depositors would have full access to their funds.

Fang said that Signature Bank was OKCoin’s main partner for US dollar transactions, so the closure of the bank has “some short-term implications” for the exchange. The platform team has suspended the ability to deposit funds in dollars for customers because they “don’t want them to get stuck.”

According to Fang, the funds of the exchange and its clients are safe, deposits in other currencies and cryptocurrencies, as well as trading operations are not affected, the possibility of withdrawing dollars is available.

“Our team are working very hard on alternative channels and solutions in real-time We’ve been through much worse times since our inception. If this weekend has told us anything, it’s the significance of the future that we are building. Our commitment to you hasn’t changed either,” OKCoin CEO wrote.

Coinbase and Paxos also said they have funds in Signature Bank, but both ruled out losing them.

    Newsletter | Every weekday

    Smart Central News Weekly Briefing

    Only top industry news of the week in your inbox