The first cryptocurrency exchange in the world no longer accepts dollar payments to purchase coins such as bitcoin.

The bitcoin market has been favorable to investors this year.

At least thus far, market momentum has been positive, and some are already anticipating a 2019 repetition.

The growth of bitcoin coincided with a peak in Federal Reserve monetary policy at the time. That is equivalent to the present time frame.

According to several experts, the Federal Reserve may moderate its aggressive interest rate hikes, which have harmed riskier assets such as cryptocurrencies and technology companies.

After the so-called crypto winter, which crushed prices late last year, investors are similarly exhausted. As a result, a combination of investors gradually returning to the market and a more accommodating Federal Reserve is pushing prices higher.

Binance Suspends US Dollar Transfers

The repercussions of this fiasco are still being evaluated. Binance, the largest cryptocurrency exchange in the world, has just made a decision that, according to the platform, is related to the FTX incident.

The site momentarily stopped bank account deposits and withdrawals in US currency.

It means that investors who wish to purchase cryptocurrencies such as Bitcoin, ether, Solana, Dogecoin, and Cardano cannot move US dollars from their bank accounts to the platform. Investors who wish to sell their coins will not be able to get US cash for a deposit.

Fiat currencies, such as the euro and the British pound, remain unaffected.

“As of February 8, we are temporarily banning USD bank transfers,” a spokesman said in an email. “Customers who were affected have been notified personally. Only 0.01% of our monthly active consumers utilize USD bank transfers. Still, we are working diligently to restore service as quickly as possible.”

Banks are hesitant to collaborate with crypto companies.

The decision made by Binance is relatively unexpected. Traditional banks are frequently hesitant to collaborate with crypto enterprises to mitigate the dangers connected with the anonymity prevalent in the crypto industry. Some crypto promotes money laundering and other illegal transactions.

Traditional banks must further extend their risk-oversight teams by developing ties with crypto companies. Since most crypto enterprises are private, they are not required to be transparent about their operations. Therefore, many financial institutions want to avoid this additional headache.

After the FTX catastrophe, regulators reissued their warnings to banks regarding the dangers of conducting business in the crypto sphere.