According to reports from the Financial Times on Tuesday, cryptocurrency exchange Binance has updated its policies, enabling larger traders to store their assets in independent banks. Previously, these traders were required to hold their assets either on the Binance platform or with its custodial partner, Ceffu. Now, they have the flexibility to utilize crypto-friendly institutions such as Swiss banks Sygnum or FlowBank.
This strategic move could be a response to users' concerns about Binance's regulatory challenges in the U.S., which resulted in a $4.3 billion fine in November. The apprehensions were further heightened by the earlier bankruptcy of FTX, a rival cryptocurrency exchange.
Expressing a preference for placing funds with a Swiss bank over Binance, the head of a crypto trading firm highlighted the evolving sentiments within the industry.
In November, Binance announced its exploration of a banking triparty arrangement for over a year, referring to an arrangement involving the exchange, its customers, and a bank custodian. However, specific bank names were not disclosed at the time.