DUBAI – Binance, the world’s largest cryptocurrency exchange, says it is temporarily suspending deposits and withdrawals of US dollars using bank accounts, and will work to restart the service soon.

The suspension will start on Wednesday, according to a Binance spokesman. No reason was given for the suspension. Bank transfers using other fiat currencies, such as the euro, are unaffected, the representative said.

“It is worth noting that only 0.01 per cent of our monthly active users leverage USD bank transfers, but that we are working hard to restart service as soon as possible,” said the spokesman in an e-mailed statement.

Other methods of buying and selling crypto on Binance, such as via credit card, Google Pay and Apple Pay, “remain unaffected”. 

Crypto companies have had difficulties finding banking partners to facilitate the sending of money to buy and sell digital assets. Following the collapse of FTX, banks have been warned by federal regulators of the risks of doing business with crypto firms.

In January, Binance said its banking partner, Signature Bank, will handle user transactions only if these are for more than US$100,000 (S$133,000), as the lender decreases its exposure to digital asset markets. The New York-based bank said in December it intends to cut as much as US$10 billion in deposits from crypto clients.

A spokesman for Signature said on Monday that the bank cannot comment on client-related matters. BLOOMBERG