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Customers of any of the banks facilitating fiat trading with Binance will not be able to trade crypto via SWIFT transfers under $100,000. The transaction minimum, aimed at reducing exposure to digital assets, will be introduced by the financial institution in February.
Bank working with Binance sets $100,000 transaction minimum for crypto traders
A bank serving select customers of the world’s largest cryptocurrency exchange, Binance, will only process customer transactions over $100,000, starting the first day of February. The new minimum will be imposed as part of the lenders’ decision to limit its exposure to digital asset markets.
One of our fiduciary banking partners, Signature Bank, has indicated that it will no longer support any of its crypto exchange clients with buy and sell amounts below $100,000 effective February 1, 2023. This is the case for all of their crypto exchanges. customers, Binance said in a statement shared with Bloomberg on Saturday, adding:
Therefore, some individual users may not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than USD 100,000.
The measure affects retail traders with accounts managed by Signature and the exchange has assured clients that it is actively seeking a new partner for SWIFT US dollar transfers. SWIFT is the most widely used global system for interbank transfers.
Only 0.01% of Binances monthly users are serviced by Signature Bank and no other banking partners are impacted, the crypto firm pointed out through a spokesperson. Card payments and non-USD transfers will not be affected.
The news comes after New York-based Signature Bank revealed plans in December to cut up to $10 billion in digital asset customer deposits as it exits the banking industry. cryptography. The move was announced following the collapse of FTX, one of Binances’ main competitors which filed for bankruptcy protection in November due to liquidity issues.
Traditional financial firms have been gripped by contagion fears in a turbulent year for the crypto space, with falling prices and a number of crashes. Silvergate Capital, the California-based parent company of Silvergate Bank, which deals in crypto transactions, saw its shares drop 40% after customers withdrew more than $8 billion in digital asset deposits in the fourth quarter 2022.
Shares of signatures fell 64% last year, the report noted. Its decision comes after the US Federal Deposit Insurance Corporation (FDIC) issued a warning about the risks associated with crypto assets. Business models focused on crypto-related activities or exposed to the crypto-asset market raise security and soundness concerns, the regulator said in a statement released in early January.
Tags in this story Bank, banking partner, Binance, Crypto, crypto assets, crypto exchange, crypto traders, Cryptocurrencies, Cryptocurrency, Cryptocurrency Exchange, Exchange, minimum, Signature, Signature Bank, Swift, transactions, transfers, USD
What do you think of Signature Banks’ decision to introduce transaction minimums for crypto-related transfers? Let us know in the comments section below.
Lubomir Tassev
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