Bybit, a competitor to Binance and once solvent FTX, is making headlines for declaring that it will no longer be accepting wire deposits in the form of the United States dollar. Yet another blow to the US-dominated crypto sphere in large part due to the increasing scrutiny coming from Capitol Hill and, in particular, the SEC and the rest of the federal government.
According to the announcement, the crypto exchange no longer accepts USD deposits via wire transfers, including SWIFT, but users can still fund purchases through their credit and debit cards. The exchange also noted that while USD wire transfer deposits have been halted, USD withdrawals via wire transfers will remain available until midnight on 10 March, and urged clients who wish to withdraw USD to do so “as soon as possible.”
Is This Just a Pivot by Bybit?
Bybit will continue to accept USD deposits through the Advcash crypto wallet and is currently working on making USD withdrawals available through the same crypto wallet. The exchange also noted that users’ USD funds were “safe and secure” and that it is closely working with its partners on an alternative USD solution.
Bybit is not the only cryptocurrency exchange to have recently disabled USD bank transfers, with Binance also temporarily suspending the service back in February. The popular crypto exchange previously also had troubles with its SWIFT transfers in USD, with its banking partner Signature Bank warning Binance it would no longer support such transactions of less than $100,000.
Bybit’s announcement came only a day after Silvergate Bank, another crypto-focused bank, revealed it would be discontinuing its digital assets payment network SEN, noting that it was a “risk-based decision.”
The stock price of the bank fell significantly last week after crypto exchange Coinbase and stablecoin issuer Paxos announced they will be terminating their partnerships with Silvergate.
It’s Not All Bad News
With that news, there is also exciting news in a world that seems to be constantly shunned by negativity. Now, we have something to look forward to from Bybit as they shutter their USD wire transfers: a new credit card or, at the very least, a digital card.
Bybit has released a free virtual card that can be used for online purchases, with a real card coming out in April. By using the card, customers can directly debit funds from their cryptocurrency wallets rather than going through exchanges or other off-ramp providers.
Clients in qualifying countries across Europe and the United Kingdom will be able to access it after completing the necessary Know Your Customer and Anti-Money Laundering (KYC/AML) processes. Customers will receive plastic cards in the mail that can be used at any ATM and at any merchant worldwide up to the combined spending limit of all the currencies in their Bybit account.
Benefits of a Bybit Card
Bitcoin (BTC), Ethereum (ETH), Tether (USDT), the U.S. Dollar Coin (USDC), and Ripple (XRP) are the first supported cryptocurrencies for Bybit Card.
If a customer from Europe or the UK submits a payment request, their digital asset balance will be converted into the appropriate fiat currency at the time of the request. In the future, more coins may be supported.
So although we may see yet another exchange no longer offer the same ease of use as past deposits, we can all look forward to another successful crypto debit card with hopefully just as much robustness as the Bybit platform itself.
Maybe just maybe, we found a good one this time, you guys.
