Binance's banking partner - Signature Bank - will stop processing SWIFT payments of users of the exchange in US dollars in the amount of less than $100. The organization wants to reduce the impact of the digital asset market on its business, reports Bloomberg with reference to the statement of the cryptocurrency platform.
“One of our banking partners, Signature Bank, has announced that starting February 1, 2023, it will stop supporting purchases and sales of less than $100 for cryptocurrency exchanges. This applies to all its clients among cryptocurrency trading platforms. As a result, some users will not be able to use SWIFT bank transfers to buy or sell digital assets for US dollars, if the volume does not exceed the specified threshold," the agency quoted the company as saying.
Speaking to Bloomberg, a representative of Binance noted that the restrictions will not affect other banking partners in the SWIFT system. He also emphasized that Signature Bank "serves 0,01% of the average monthly number of users of the exchange" and the company is "actively working on finding an alternative solution."
Some users have already reported that they received an email from the exchange warning them about the restrictions being introduced.
Fears surrounding the digital asset market have gripped traditional financial firms such as Signature and Silvergate Capital, whose shares fell 40% after the bank said its customers withdrew about $8,1 billion in digital asset deposits during the fourth quarter of 2022. year
Signature Bank announced in December that it intends to dispose of up to $10 billion in digital asset customer deposits as it begins its exit from the cryptocurrency industry following the bankruptcy of the FTX exchange.
This happened after the US Federal Deposit Insurance Corporation warned about the risks of cryptoassets. The FDIC is the primary US federal regulator for banks incorporated in states that have not joined the Federal Reserve System.
While not prohibited, banking organizations are discouraged from providing services related to crypto-assets because they raise significant security and reliability concerns, the FDIC said in a Jan. 5 statement.
