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Cryptocurrency exchange Krakenannounced that it is experiencing difficulties with the deposit and withdrawal channel associated with the Automated Clearing House (ACH) and serviced through the failing Silvergate Bank.
Cryptocurrency exchange Kraken announced the suspension of operations for the reason that it has still not been able to choose a new banking partner.
“Starting March 27, Kraken customers will not be able to depositdeposits through Plaid and withdrawals through an ACH channel hosted by Silvergate. We are working to offer users new ACH service options through alternative financial service providers as soon as possible,” a Kraken spokesperson promised reporters.
The Kraken team clarified that the temporarythe restriction of operations will not affect other exchange services. The trading platform recommended that users explore other available transaction options, including the MVB Bank channel for replenishing deposits and withdrawals through Fedwire services.
This is not the only case of breaking up partnershipsrelations between cryptocurrency exchanges and financial institutions. Previously, the cryptocurrency exchange Coinbase introduced similar restrictions in relation to its clearing partner Signature Bank. The exchange has stopped
supporting settlements through Signature's digital payments platform Signet following its forced closure by US financial regulators.
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