Other services on the exchange remain as they were, and would not be affected by the upcoming change.
Top cryptocurrency exchange Kraken has announced to its users that it will be suspending automated clearing house (ACH) deposits and withdrawals on March 27. According to a CoinDesk report, the decision stems from the recent collapse of its banking partner, Silvergate Bank. Expectedly, Silvergate’s March 8 collapse has impacted the abilities of users to perform bank transfers to and from the exchange. Additionally, Kraken has been unsuccessful in finding a new banking provider. Hence, its decision to halt withdrawals and deposits, at least for the period it will continue to look for a new banking partner. Part of the announcement reads:
“As of March 27, 2023, Kraken clients will no longer be able to use ACH deposits and withdrawals through Silvergate.”
ACH Deposits and Withdrawals to Resume on Kraken in the Future
Meanwhile, it is worth mentioning that the halt decision is not final. Kraken insists that efforts are ongoing to secure another banking partner. Per the exchange, ACH deposits and withdrawals will resume once it finds new funding providers. The exchange wrote:
“We are working to make ACH funding options available through alternative funding providers as soon as possible and will communicate details with clients as soon as we can.”
It is also worth noting that other services on the exchange remain as they were, and would not be affected by the upcoming change.
On March 8, Silvergate Bank, a major lender to the crypto industry, announced that it was winding down its operations and liquidating its bank. At the time, the decision was a fallout from the collapse of Silicon Valley Bank, a major lender to startups, which collapsed on March 3 after depositors hurriedly withdrew more than $42 billion from it following reports that the bank needed to raise $2.25 billion to boost its balance sheet.
Meanwhile, the crypto-friendly Signature Bank was a major backer for many crypto firms. Some of the firms include top American exchange Coinbase, Mike Novogratz‘s crypto-focused financial services firm Galaxy Digital, and blockchain infrastructure Paxos. While all the exposed firms have since disclosed that they held balances in the bank, Silvergate has assured depositors that they will receive their balances in full.
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