Bybit deposits in U.S. dollars are “No Longer Available,” and withdrawals may only be made up to March 10.
The cryptocurrency exchange headquartered in Dubai reported that it temporarily halted accepting U.S. dollar deposits made via bank transfer due to a partner-triggered service failure.
Bybit has notified (1) on its website that all wire transfers denominated in U.S. dollars, including SWIFT transfers, have been effectively halted, and withdrawals will be halted on March 10. Clients can access various alternative payment and withdrawal options when dealing with cryptocurrency.
The cryptocurrency exchange did not disclose the partner’s identity responsible for stopping bank transactions.
Notice on Suspension of USD Payments via Bank Transfer
You may continue to make USD deposits via the Advcash Wallet, or buy cryptocurrencies with your credit card on our One-Click Buy page.
More details here: https://t.co/Roae3T4pYJ#Bybit #TheCryptoArk pic.twitter.com/XAUI2AeDJC
— Bybit (@Bybit_Official) March 4, 2023
Bybit assures Clients That Their Money Is “Safe and Secure.”
Bybit is one of the organizations with potential exposure to Genesis Global Trading, a bitcoin lender that filed for Chapter 11 bankruptcy protection earlier this week.
Bybit claims that user funds are “safe and secure.” However, it recommends that customers who intend to withdraw USD do so “as soon as possible” to minimize any possible difficulties that may arise.
According to Ben Zhou, the Chief Executive Officer of Bybit, Mirana Asset Management, the company’s investment arm, has exposure to Genesis worth $150 million.
According to what Zhou said, 120 million dollars worth of the funds had already been securitized and liquidated (2).
In addition, he stressed that all client assets are stored in separate accounts and that Bybit’s earn products do not use Mirana.
The biggest crypto exchange, Binance, disclosed a month ago that it would temporarily block deposits and withdrawals to and from U.S. dollar bank accounts, but it guaranteed that the service would be reinstated as quickly as possible.
Payment Disruptions
This decision comes at the same time as the collapse of the cryptocurrency payments network managed by the bankrupt American lender Silvergate Capital.
Several different exchanges and investors used the real-time system that was available around the clock. Still, on Friday, March 3, it was discontinued owing to a “risk-based decision.”
The network served as a significant point of entry and departure for USD transactions throughout the United States cryptocurrency market.
With the disastrous failure of FTX in November 2022, regulatory restrictions and market outflows are putting pressure on institutions in the United States to reduce their commitment to cryptocurrency assets.
Legislators have voiced their concerns about the absence of regulatory control for cryptocurrencies, which, according to them, opens the door to chances for fraudulent activity, money laundering, and other forms of illegal conduct.
There have also been discussions over the appropriate classification of cryptocurrencies as either securities or commodities. If classified as any of these, cryptocurrencies must comply with various regulations.
Despite these worries, some legislators and regulators have acknowledged the possible benefits of cryptocurrencies.
These benefits include the potential of cryptocurrencies to make international transactions easier, cheaper, and more accessible; to promote financial inclusion; and to provide an alternative to traditional forms of value storage.
Policymakers are struggling with balancing the possible advantages and hazards of this emerging category of assets as the bitcoin market continues to develop.