Binance Now Allows Larger Traders to Keep Their Assets Elsewhere: FT

Cryptocurrency exchange Binance now allows larger traders to keep their assets at independent banks, the Financial Times reported on Tuesday.

Previously, they had to hold their assets on the exchange or at its custodial partner, Ceffu. They can now use crypto-friendly institutions such as Swiss banks Sygnum or FlowBank.

The move may reflect users’ unease about Binance’s regulatory dispute in the U.S., which saw it landed with a $4.3 billion fine in November, heightening concerns brought about by the bankruptcy of rival exchange FTX a year earlier.

“I’d much rather park my money with a Swiss bank than Binance,” said the head of a crypto trading firm cited by the FT.

Binance said it had been exploring a banking triparty arrangement almost two years ago, referring to an arrangement with its customers and a bank custodian, though declined to comment on the names of the banks, according to the FT.

“Counterparty risk is an industry concern, not specific to Binance,” the exchange added.

Binance did not immediately respond to CoinDesk’s request for further comment.