Signature Bank Halts crypto transactions under $100,000: Binance

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1. Binance, revealed that Signature Bank would only accept transactions over $100,000.
2. The service interruption would affect SWIFT users who buy or sell cryptocurrencies for less than $100K.
3. Signature to withdraw $10 billion in customer deposits for digital assets.

Binance, the largest cryptocurrency exchange in the world, recently made an announcement that Signature Bank would no longer handle user transactions with a value of less than $100,000 as the bank continues to minimize its exposure to digital asset markets.

According to the reports, the SWIFT payment system will be impacted by the outage, preventing customers from making purchases and sales of digital assets through SWIFT. It is expected that services will be disrupted beginning on February 1.

Binance recently sent out an email to its user base informing them that the cryptocurrency exchange was in the process of looking for a new SWIFT partner to aid it in preventing any more interruptions in bank payment transfers.

SWIFT is a network that facilitates the transfer of information and instructions between various financial organizations.

Blomberg reports that the cryptocurrency exchange explained the change was the result of a decision by fiat banking partner Signature Bank and would impact other trading platforms as well as 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 1, 2023.” Each and every one of their cryptocurrency exchange customers faces this exact situation. Binance said in a statement provided to Bloomberg News on Saturday that some users may be unable to use SWIFT bank transfers for purchases or sales of cryptocurrency involving quantities of USD less than $100,000.

In light of the Federal Deposit Insurance Corporation’s (FDIC) recent warning, this makes sense. Banks chartered by states in the United States that are not members of the Federal Reserve System are primarily regulated by the FDIC.

As part of a widespread exodus from the cryptocurrency market following the demise of FTX, New York-based Signature announced that it planned to withdraw up to $10 billion in customer deposits for digital assets.

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