Signature bank collapse is currently one of the most debatable topics among experts related to the banking sector. The previous week was full of collapses in the banking world. Silvergate bank, SVB, and now Signature bank have to shut down their business due to regulatory frameworks.
Recently, OKCoin, a company founded by Star Xu based in San Francisco, California, announced that they have temporarily suspended the deposit facility of USD. The news comes after back-to-back collapses of three banks. OKCoin informed in his tweet that they had no exposure to SVB and in the Silvergate issue they have managed to control the situation. But he also added that Signature is their primary USD bank to perform transactions and they have decided to suspend USD deposits temporarily.
OKCoin, a company affiliated with OKX, was the first exchange to lose its capability to deposit USD after the Signature bank collapsed on 12 March. The exchange has provided a detailed report on service which has been halted by them and which are still available.
USD deposit by wire and ACH has been immediately paused. As the exchange doesn’t want deposits to get stuck. The options like quick buy and recurring buy are also temporarily suspended. However, after mentioning the suspension the OKCoin ensured that the funds of all corporate and all customers are safe and they don’t need to worry about that.
The collapse of Signature bank sent a strong tremor to the regulators and other related institutions. Despite the assurance of the OKCoin CEO, the customers are eager to withdraw their funds from the exchange because of the unpredictability associated with it. Crypto withdrawals and deposits have not faced any suspension as per the OKCoin.
The Signature bank is considered a crypto-friendly bank and is loved by many crypto lovers. The collapse of this bank has raised serious concerns about crypto management. Silvergate and SVB already shocked the people now Signature bank has further added questions on regulatory bodies.