Crypto exchange Kraken said to stop using Signature Bank for dollar deposits, withdrawals

Non-corporate clients of cryptocurrency exchange Kraken will not be able to make dollar deposits or withdrawals using Signature Bank ( NASDAQ: SBNY ), Bloomberg reported Wednesday, citing a notice sent to customers via email. The decision comes one month after the crypto-focused bank stopped supporting crypto exchange customer transactions of less than $100K, Binance, the world's largest crypto exchange by trading volume, had said. Deposits will be phased out on March 15 and withdrawals will stop on March 31, according to the customer notice , which attributed the move to certain changes made by Signature ( SBNY ). Kraken did not immediately respond to Seeking Alpha's request for comment. SBNY noted in December 2022 it would reduce its exposure to the troubled crypto space, with plans to limit its digital currency deposit exposure to less than 15% of total deposits from 23.5%. Shares of Signature ( SBNY ) dipped 2.7% in the midst of a broader risk-off day. In February, Kraken agreed to shut down its staking program and pay $30M to settle charges with the U.S. Securities and Exchange Commission, as the agency and other regulators ramp up scrutiny of the industry .