Bybit, the popular cryptocurrency exchange, has temporarily suspended USD deposits for national and international customers due to service outages from its end-point processing partner. Starting from March 10, withdrawals will also no longer be permitted.
Bybit Halts USD Deposits, Withdrawals
On Saturday (4th March), Bybit announced that it would temporarily suspend USD deposits for both national and international customers. The cryptocurrency exchange stated that the suspension was due to service outages from its end-point processing partner, which affected wire transfers, including SWIFT. Bybit has not yet provided an estimated timeline for when USD deposits will resume.
Additionally, withdrawals will also be stopped from March 10, although users will still be able to deposit and withdraw cryptocurrencies to and from wallet addresses and fund purchases through credit cards and other payment methods.
Limited Scope of Payment Gateway Interruption
The payment gateway stoppage, according to a Bybit official, is localised and doesn’t affect other fiat or cryptocurrency and/or account funding methods. Alternative channels remain available for users to purchase cryptocurrencies in USD through debit and credit cards. The exchange is urging its partners for alternative solutions and will keep its users and stakeholders posted as soon as there are further developments.
Market Impact of Bybit’s Move
Move made by Binance, the leading digital assets exchange in terms of trading volume, which stopped dollar transfers a month earlier. The timing of Bybit’s decision also coincides with the ongoing crisis at Silvergate, a well-known California-based lender that provides traditional banking services to cryptocurrency companies, including exchanges.
Markus Thielen, Head of Research and Strategy at Matrixport, a crypto services provider, has emphasized the importance of Bybit’s decision to follow Binance’s lead in response to the Silvergate crisis for the cryptocurrency market. According to Thielen’s observation, if there are three data points indicating a deliberate effort to restrict access to USD for crypto exchanges and firms, then it can be considered as a trend. As a result, this trend may lead to a potential decrease in Bitcoin’s value, comparable to the one experienced when Binance suspended USD transfers in January.
Conclusion
Bybit’s temporary suspension of USD deposits and withdrawals is a significant development in the cryptocurrency market, especially as it follows Binance’s move last month. While users can still deposit and withdraw cryptocurrencies using other payment methods, it remains to be seen what impact this will have on the broader crypto market.
