Bybit Halts US Dollar Deposits via Bank Transfer Due to Service ‘Outages’ From Partner

On March 4, 2023, cryptocurrency exchange Bybit announced that it had suspended U.S. dollar deposits via bank transfer. Bybit cited “outages” from its partner as the reason for the suspension of USD deposits via bank transfers and the SWIFT network.

The cryptocurrency exchange Bybit, founded in 2018, announced on Saturday that it is suspending U.S. dollar deposits. “Bybit has suspended USD deposits via bank transfer due to service outages from our partner,” the company said. “Effective immediately, USD deposits via wire transfer (SWIFT) and wire transfer (for U.S. bank) are no longer available.”

Bybit noted that customers can continue to make U.S. dollar deposits via the Advcash wallet or with a credit card. Bybit clients will still be able to make withdrawals via wire transfers through SWIFT and U.S. banks until March 10, 2023. “If you wish to withdraw USD at short notice, please do so as soon as possible to avoid potential disruptions that may occur due to prevailing circumstances,” the cryptocurrency exchange announced.

The Dubai-based cryptocurrency exchange said it would launch an Advcash wallet withdrawal service to expedite the user experience. “Please rest assured that the USD assets you hold in Bybit are safe and secure,” Bybit said. “Our platform has undergone strict security measures to ensure the safety of all user funds.” Bybit did not disclose the identity of the partner experiencing outages.

The news from Bybit follows a similar situation that occurred with Binance, the world’s largest cryptocurrency exchange by trade volume. During the first week of February 2023, Binance announced it was halting U.S. dollar deposits and withdrawals. The development comes at a time when U.S. banks are reducing their exposure to cryptocurrency assets due to recent issues with Silvergate Bank.

What do you think the impact of U.S. banks reducing their exposure to cryptocurrency assets will be on the future of cryptocurrency exchanges? Let us know what you think about this subject in the comments section below.