Cryptocurrency exchange Binance has made a significant policy change, allowing its large trading clients to store their digital assets on third-party platforms. This decision comes as a response to mounting pressure from key clients, who have expressed concerns about the safety of their assets on Binance due to the exchange’s conflict with US authorities and the recent downfall of FTX exchange.
According to sources from the Financial Times, one particular head of an undisclosed crypto company stated that he would now prefer to store funds in a Swiss bank rather than on Binance. This sentiment has led Binance’s large clients to explore alternative storage options, with some opting for Swiss crypto banks such as Sygnum and FlowBank.
Sygnum has confirmed receiving requests from clients seeking solutions to reduce counterparty risks during crypto exchange trading. On the other hand, representatives from FlowBank have yet to provide official comments on the matter to the Financial Times.
It is worth noting that Binance had previously hinted at the possibility of a tripartite agreement involving its customers and banks for the storage of funds. However, no specific bank names were disclosed at the time.
A November survey conducted by Binance revealed that the majority of residents in European countries have a positive outlook on the future of the cryptocurrency market.
Eleanor Ashworth is editor-in-chief at BTCNews. A Cambridge-trained journalist with 18 years across the Financial Times, Reuters and the Telegraph, she joined the crypto beat in 2017 after covering the Bank of England and HM Treasury. She holds the SABEW Best in Business award (2022) and was shortlisted for the British Journalism Awards (2023). At BTCNews she sets the editorial line for Bitcoin and macro markets coverage, with a focus on institutional adoption, regulation and central-bank policy. Based in London.
