Cryptocurrency exchange Coinbase will no longer accept or initiate payments to or from Silvergate Bank, citing "recent developments."
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The US-based crypto exchange said in a tweet it had switched from the Californian bank "out of an abundance of caution." In an email sent to Prime customers, Coinbase added it would be facilitating banking transaction through Signature Bank.
The move comes shortly after Silvergate said in a filing to the US Securities and Exchange Commission (SEC) that due to its debts the bank could be "less than well capitalized".
Silvergate says it is now in the process of "re-evaluating its businesses and strategies in light of the business and regulatory challenges it currently faces." The bank's shares negatively reacted to the news, losing in a moment over 45% down to $7.4.
In the meantime, Kraken decided to cut ties with Signature Bank for its key financial transactions, Bloomberg reported, referring to emails sent to customers by the exchange. Starting from March 15, non-corporate clients won't be able to send dollars to Kraken using Signature. The exchange will also suspend withdrawal operations through Signature Bank starting from March 31.
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