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

Okcoin has paused USD wire and ACH deposits and OTC services, among other platform offerings.
CEO Hong Fang: The move is a precaution against implications of Signature Bank collapse.
Customers can still withdraw USD and crypto.

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.

2/ We want to make sure that no customer transactions are interrupted while @NYDFS takes control of Signature Bank. Therefore, we've paused:

1️⃣ USD deposits by wire & ACH
2️⃣ Crypto transactions by credit card
3️⃣ Over-the-counter services
4️⃣ Trading USD-crypto trading pairs.
— Okcoin (@Okcoin) March 13, 2023

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.

What has not changed @Okcoin:
- All corporate and all customer funds are safe
- Order-book trading not affected
- EU deposit not affected
- USD withdrawal not affected. The processing pace will be subject to bank operation
- Crypto withdrawals and deposits still intact
— Hong (@hfangca) March 13, 2023

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).

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