Kraken, one of the largest cryptocurrency exchanges in the world, has announced the suspension of Automated Clearing House (ACH) deposits and withdrawals due to the recent closure of Silvergate Bank. Silvergate is a major banking partner for Kraken, providing the exchange with critical banking infrastructure for its ACH transfers.
In a statement released on its website, Kraken explained that it was forced to suspend ACH deposits and withdrawals due to the unexpected closure of Silvergate's National Automated Clearing House Association (NACHA) membership. The closure has caused significant disruption to Kraken's banking operations, and the exchange is currently working to find a new banking partner to facilitate its ACH transfers.
The suspension of ACH deposits and withdrawals is likely to cause inconvenience for Kraken's customers, many of whom rely on ACH transfers to deposit and withdraw funds from the exchange. However, Kraken has stated that it is working to resolve the issue as quickly as possible, and that customers can still use other methods, such as wire transfers, to deposit and withdraw funds.
The closure of Silvergate's NACHA membership is the latest in a series of challenges faced by the cryptocurrency industry, as it continues to struggle with the traditional banking system. Many banks are still hesitant to work with cryptocurrency exchanges, due to concerns over money laundering and regulatory compliance.
Overall, the suspension of ACH deposits and withdrawals by Kraken is a reminder of the challenges facing the cryptocurrency industry, and the need for continued efforts to develop robust banking infrastructure and regulatory frameworks to support the growth of the industry