A partner of Binance, Signature Bank, has informed users of the exchange that it will no longer handle SWIFT transfers under $100,000.
Another day, another Binance FUD story. This time, the breaking news is that Binance customers will no longer be able to send SWIFT payments under $100,000 through Signature Bank.
The following was written by Binance:
“One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1st, 2023. As a result, some individual users may not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than 100,000 USD.”
Only 0.01% of Binance users would be impacted by the removal of this service, the article claims. Binance announced that it would look for a solution to the problem.
Since relatively few of Binance’s users use the SWIFT service, its withdrawal for smaller sums would not seem to have much of an effect on Binance.
However, in this unsettling environment for cryptocurrencies, Signature Bank appears to be the most impacted firm. According to a Business Standard article, the bank was considering lowering its cryptocurrency business risk in the wake of the FTX crash.
As it starts to withdraw from providing services to the cryptocurrency market, the bank reportedly stated in December that it planned to get as much as $10 billion in deposits from clients who own digital assets off of its books.
The Federal Deposit Insurance Corporation issued a warning to banks about the dangers of continuing to offer services to customers who are involved in cryptocurrencies, which led to the actions of Signature Bank.
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