Binance users cannot transfer less than $100,000 via SWIFT from February 1

[ad_1]

Crypto exchange Binance has told users they won’t be able to buy or sell cryptocurrencies below $100,000 via SWIFT starting Feb. 1, according to an emailed statement on Feb. 21. January.

The crypto exchange blamed the new decision on an anonymous banking partner. He said the bank restricts access to all of its “crypto exchange clients.” As of press time, no new crypto exchange has announced a similar restriction.

Meanwhile, Bloomberg reported on January 21 that Binance’s unnamed banking partner is Signature Bank.

Binance said the disruption did not affect its other services or “corporate accounts”. Exchange users can continue to buy crypto using their credit or debit card and through other fiat currencies, including the Euro. He added that he was “actively working” to find an alternative solution to the SWIFT USD situation.

Traditional Financial Firms Fear Crypto Contagion

Traditional financial institutions like Silvergate Capital and Signature Bank have started to reduce their crypto exposures to protect them from contagion from the crypto industry. These banks had established themselves as crypto-friendly financial institutions, but recent events have forced a rethink.

After FTX collapsed in November, Silvergate experienced a bank run that saw it process around $8.1 billion in withdrawals. The leading crypto bank posted a net loss of $1 billion in the fourth quarter of 2022. The bank said it was “relocating some non-essential customers and eliminating part of its product portfolio” to ensure the resilience of its business .

More recently, Silvergate revealed that it had $2.5 million exposure to bankrupt crypto lender Genesis.

Meanwhile, Signature Bank said it was looking to cut its crypto deposits by up to $10 billion. Signature Bank CEO Joe DePaolo reportedly said the Wall Street bank would reduce such deposits to less than 15% of its total deposits.

On January 5, a joint statement from US financial agencies warned of the risks of crypto-assets for banking organizations. Regulators said companies with heavy crypto exposure raise security and soundness concerns. They added that issuing or holding crypto assets as principal is “inconsistent” with safe banking practices.

Disclaimer

BeInCrypto has reached out to a company or individual involved in the story for an official statement on recent developments, but has yet to receive a response.

[ad_2]