Affected by Signature Bank collapse, Okcoin pauses USD wire and ACH deposits, among other services

Okcoin crypto exchange has paused USD deposits by wire transfer and ACH, citing exposure to Signature Bank, the Chinese exchange’s primary USD partner. Based on the announcement, crypto transactions by credit card, trading for all USD-crypto trading pairs, and over-the-counter (OTC) services will also be halted.

Okcoin reacts to Signature bank collapse

From the announcement, the temporary service changes follow the recent declaration that the New York Department of Financial Services (NYDFS) would be taking possession of Signature Bank. An excerpt from the official press release reads:

Superintendent Adrienne A. Harris announced today that the New York Department of Financial Services (DFS) has taken possession of Signature Bank, pursuant to Section 606 of New York Banking Law, in order to protect depositors. DFS appointed the Federal Deposit Insurance Corporation (FDIC) as receiver of the bank.

In a joint statement by the US Treasury Department, the Federal Reserve Bank, and the FDIC, all Signature Bank depositors will be reimbursed.

Notably, Signature Bank was Okcoin’s choice platform for processing incoming wire, ACH, and credit card transactions. With this move, therefore, the exchange has reduced any chances of customer deposits getting delayed or affected as the NYDFS rolls out its program for Signature Bank.

Okcoin CEO: What has not changed

Okcoin platform’s CEO Hong Fang noted that while key offerings have been suspended, several aspects remain intact, including crypto withdrawals and deposits. Other unaffected elements include the firm’s order-book trading, EU deposit, and USD withdrawal, adding that all corporate and customer funds remain safe. The processing speed for these offerings will be subject to bank operation.

Fang also revealed the deployment of a team that was already working on alternative channels and solutions in real-time. Notably, Okcoin is a Chinese digital currency trading platform and Beijing-based exchange, boasting the lowest trading fees and providing users with better access to Bitcoin (BTC).