According to a March 13 tweet\u00a0by Okcoin CEO Hong Fang, the U.S. affiliate of cryptocurrency exchange OKX had no exposure to defunct U.S. tech bank Silicon Valley Bank (SVB). However, Fong stated that Okcoin\u2019s U.S. dollar wire and ACH deposits have been \u201cimmediately paused\u201d due to the regulatory intervention in Signature Bank, Okcoin\u2019s primary partner for customer transactions in dollars.\u00a0<\/p>\n
On March 12, New York state regulators closed Signature Bank, a major financial institution for fiat-crypto on-ramping, citing a \u201csystemic risk exception\u201d in the wake of SVB\u2019s collapse. In addition to suspending dollar deposits, Fang wrote that \u201cover-the-counter services will be temporarily paused too,\u201d including its quick buy and recurring buy functions. Okcoin also stated that the suspension extends to \u201ccrypto transactions by credit card\u201d and \u201ctrading USD-crypto trading pairs.\u201d<\/p>\n
In response to user inquiries, Fang clarified that \u201call corporate and all customer funds are safe\u201d and \u201cUSD withdrawal not affected. The processing pace will be subject to bank operation.\u201d All crypto deposit and withdrawal functions remain intact, including those of U.S. dollar-pegged stablecoins. Furthermore, the suspension appears limited to dollar deposits, as other fiat deposit methods, such as those made in euros, are unaffected.<\/p>\n
\u201cOur team are working very hard on alternative channels and solutions in real-time We\u2019ve been through much worse times since our inception. If this weekend has told us anything, it\u2019s the significance of the future that we are building. Our commitment to you hasn\u2019t changed either.\u201d<\/p><\/blockquote>\n
The crypto-friendly Signature Bank was a key partner for many crypto firms, including Coinbase, Celsius and Paxos, which have since disclosed that they held balances in the bank. U.S. federal regulators have stated that Signature Bank depositors will receive their balances in full post-shutdown.<\/p>\n