Financial Times reports that Binance, the world’s largest cryptocurrency exchange by volume, has made a significant move. Accordingly, big investors using the crypto exchange can now keep their assets in supported independent banks instead of holding them at Binance.
Big Investors Can Now Keep Their Assets in Swiss Banks
The major cryptocurrency exchange Binance has paved the way for big investors to keep their assets in independent banks. Until now, big investors had to keep their assets either on the cryptocurrency exchange or with the custody partner Ceffu. Investors can now use crypto-friendly financial institutions such as Swiss banks Sygnum or FlowBank for storing their assets.
This move seems to be an attempt to alleviate concerns about regulatory disputes in the US following Binance being fined $4.3 billion in November 2023 and the increased worries after the collapse of rival cryptocurrency exchange FTX a year ago.
The president of a crypto trading company, who was not named in the FT report, stated, “I would prefer to park my money in a Swiss bank instead of Binance and trade in this way.”
Binance Spokesperson Confirms Banking Arrangement for Asset Custody
On the other hand, FT mentioned that a Binance spokesperson said they have been exploring a banking regulation and working on an agreement with a bank custodian for their clients nearly two years ago. While the spokesperson did not name the specific banks, they remarked, “Counterparty risk is not unique to Binance; it’s a source of concern for the industry.”
With current data, Binance is the world’s most used and largest cryptocurrency exchange with a trading volume of $12.65 billion in the last 24 hours. Binance is followed by the US-based Coinbase exchange with a trading volume of $2 billion and the Kraken exchange with $966.43 million in trading volume.
