Coinbase Suspends Initiating Payments from Silvergate
Coinbase Global Inc. an American cryptocurrency exchange suspends the initiating payments from Silvergate for not submitting the annual report before the deadline. This suspension has made troubles at Silvergate Bank and it was made clear that Silvergate was intimated about the deadline for the submission of the annual report 2022. As Silvergate Bank could not submit the annual report which resulted in the suspension of initiating payments. As a result of this suspension, Signature and Coinbase prices have dipped almost 7%.
Coinbase Reaction to Silvergate
On Thursday, 2nd of March 2023, Coinbase shared this suspension via Twitter thread.
At Coinbase all client funds continue to be safe, accessible & available.
In light of recent developments & out of an abundance of caution, Coinbase is no longer accepting or initiating payments to or from Silvergate.
— Coinbase (@coinbase) March 2, 2023
Coinbase disclosed that the exchange is going to drop its collaboration with a cryptocurrency-dedicated bank named Silvergate. This made Silvergate face crucial circumstances in terms of the breakdown of trading volume in the last 24 hours. Crypto lending bank, confirmed the allegation and requested Security and Exchange Commission (SEC) for two weeks extension for submitting the annual report.
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Coinbase disclosed that all the previous funds of the clients will be available, accessible and safe at the exchange. However, in light of recent circumstances, Coinbase has decided to suspend initiating or accessing payments from Silvergate. The exchange also made clear that this won’t affect the cash transactions of the institutional clients and this will be carried out by other banking collaborations. Moreover, clients won’t have to face any kind of difficulties however the payments via Silvergate, the crypto lending bank.
How Coinbase sees Silvergate Downgrade
Amid Silvergate’s downgrade since the suspension, the crypto lending bank is going through tough circumstances and confusing the client as well. The crypto exchange addressed the issue and took clients in confidence that their assets are safe and can carry out their cash transactions via other banking partners. Coinbase also made clear that the exchange has already taken proactive actions to make sure that this suspension wouldn’t have any adverse impacts on the client’s experience.
In yesterday’s filing, Security and Exchange Commission disclosed that Silvergate is struggling and evaluating its current status that either is in the state to carry on as it couldn’t submit its fiscal annual report for 2022. Bank also requested the two weeks extension for report submission that is under consideration. But for now, the exchnage has decided to suspend initiating payments from Silvergate.
