Banking partner Binance SWIFT set to ban USD transfers below $100,000

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Binance has notified its retail customers of a potential disruption to inbound services that could disrupt on- and off-ramp bank payment transfers.

The service disruption will impact users of bank accounts held in US dollars who are looking to buy or sell cryptocurrencies for less than $100,000 through the SWIFT payment system. The disruption will take effect on February 1.

Binance announced the news to its Binanciers via email on January 21, noting that they are now actively seeking a new SWIFT (USD) partner to avoid service disruptions for future bank payment transfers.

The cryptocurrency exchange added that it was the decision of the banking partners and that Binance would not be the only trading platform impacted by the change:

This is the case for all of their crypto exchange clients. Please note that until we are able to find an alternative solution, you may not be able to use your bank account to buy or sell USD crypto via SWIFT worth less than USD 100,000 after the February 1, 2023.

Binance stressed, however, that customers could still use their credit or debit card to buy or sell cryptocurrency, and that payments to or from third-party exchanges would still be processed.

Binance letter to Binance retail users on January 21. Source: Binance.

The cryptocurrency exchange added that SWIFT-based transfers would remain operational for non-USD bank transfers, such as euros.

Related: Binance Suspends Traders Account After Twitter Complaints

Binance has confirmed that the change will not impact its enterprise accounts.

The banking partner involved is Signature Bank, according to a Jan. 21 report from Bloomberg. The bank set the minimum transaction limit of $100,000 in an effort to reduce its exposure to the digital asset market, Bloomberg explained.

While the interruption of the payment service was not Binances’ decision, the trading platform has suspended transfers lately.

Binance recently imposed a temporary suspension on Solana-based USDT and USDC deposits on November 17.

While the exchange also temporarily suspended Ether (ETH) and Wrapped Ether (wETH) deposits and withdrawals for about 10 days ahead of the Ethereum merger.

Update 12:50 UTC January 22: Added statement from Bloomberg.

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