The chain effect caused by FTX thunderstorms is far from over.On Monday local time, the world's largest cryptocurrency exchange, Coin An, announced that it will suspend US dollar bank transfer services starting from Wednesday, without specifying the specific reason
The chain effect caused by FTX thunderstorms is far from over.
On Monday local time, the world's largest cryptocurrency exchange, Coin An, announced that it will suspend US dollar bank transfer services starting from Wednesday, without specifying the specific reason.
A spokesperson for Coin An told the media that,Only 0.01% of active users of the company transfer funds through USD bank accounts every monthThis service will also be restarted as soon as possible. Bank transfers of other fiat currencies such as euros are not affected, and Coin An users can continue to buy and sell cryptocurrencies on the platform through channels such as credit cards, Apple Pay, Google Pay, etc.
Zhao Changpeng, CEO of Coin An, responded on Twitter:
Although some banks no longer support the cryptocurrency industry, others are flooding in, and last year's events have brought some unexpected setbacks. In the long run, continue to work hard
Cryptocurrency companies have been struggling to find banking partners. After the FTX crash, a few commercial banks involved in the currency circle also reduced their risk exposure in the crypto asset market.
The Metropolitan Commercial Bank, which was the first to venture into cryptocurrency, announced its complete withdrawal from the cryptocurrency related field in early January. In late January, SignatureBank, a banking partner of Coin An, also announced that starting from February 1, 2023, it will no longer support any cryptocurrency transactions below $100000,Some individual users of Coin An may not be able to purchase and sell cryptocurrency below $100000 through bank transfers through the international settlement system SWIFT.
Coincidentally, at that time, Coin On also stated that only 0.01% of Coin On users used the SignatureBank service.
The announcement by Coin An made investors a little nervous. Arkham Intelligence data shows that after the announcement, the outflow of funds from the Coin Security cryptocurrency wallet has sharply increased, with millions of stable currencies linked to the US dollar, such as Tether and USDC, flowing to competitors' exchanges or personal wallets.
According to DefiLlama's data, the net outflow of US dollars on the same day exceeded 172 million US dollars.Arkham, a cryptocurrency research firm, believes that for a company with cryptocurrency assets worth $42.2 billion, these outflows are not significant.
The exchange token BNB of Coin An was basically unaffected by the news and remained stable at around $328.
A spokesperson for Coin An also stated that currently, the company's net deposit volume is still overwhelmingly positive.
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