- Non-corporate clients of cryptocurrency exchange Kraken will not be able to make dollar deposits or withdrawals using Signature Bank ( NASDAQ: SBNY ), Bloomberg reported Wednesday, citing a notice sent to customers via email.
- The decision comes one month after the crypto-focused bank stopped supporting crypto exchange customer transactions of less than $100K, Binance, the world's largest crypto exchange by trading volume, had said.
- Deposits will be phased out on March 15 and withdrawals will stop on March 31, according to the customer notice , which attributed the move to certain changes made by Signature ( SBNY ).
- Kraken did not immediately respond to Seeking Alpha's request for comment.
- SBNY noted in December 2022 it would reduce its exposure to the troubled crypto space, with plans to limit its digital currency deposit exposure to less than 15% of total deposits from 23.5%.
- Shares of Signature ( SBNY ) dipped 2.7% in the midst of a broader risk-off day.
- In February, Kraken agreed to shut down its staking program and pay $30M to settle charges with the U.S. Securities and Exchange Commission, as the agency and other regulators ramp up scrutiny of the industry .
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Crypto exchange Kraken said to stop using Signature Bank for dollar deposits, withdrawals