Binance’s banking partners limit trading fiat amounts

Binance says one of its banking partners, Signature Bank, has decided to reduce its exposure to cryptocurrencies.

Binance was investigated by the CFTC for allegedly letting US users trade derivatives
Binance’s banking partners limit trading fiat amounts

According to a notice sent to many users on the morning of January 22, cryptocurrency exchange Binance said that Signature Bank, a banking partner specializing in handling fiat currency transactions, has increased the limit transactions over $100,000.

Binance’s email reads:

“One of our fiat partners [Signature Bank] announced that they will not process buy and sell transactions on crypto exchanges with transaction amounts lower than 100,000 USD starting February 1, 2023. This change applies to all cryptocurrency exchanges. As a result, some users will no longer be able to use crypto trading through the SWIFT network for amounts less than $100,000.”

A Binance spokesperson further responded with Bloomberg So far, only Signature Bank has announced such a reduction in exposure to the exchange, while other banking partners are still operating normally.

The exchange is also actively looking for a new partner to replace Signature Bank, and reassured that the floor’s monthly users who link accounts with this bank account for only 0.01%.

However, the above information of Binance caused some users to misunderstand the incident and think that the interbank payment network SWIFT blocked Binance.

The crisis in the cryptocurrency market in 2022 has greatly affected banks that serve as gateways between USD and cryptocurrencies such as Signature Bank or Silvergate. The share price of Signature Bank, the New York-based bank, has fallen 64% in the past year, while the bank’s leadership team expects a $10 billion drop in institutional and institutional deposits. crypto-related clients.

Meanwhile, Silvergate bank recorded a 48% drop in share price on January 5 when it revealed that it had witnessed a drop in customer deposits of up to $8 billion in the fourth quarter of 2022, coinciding with the event. FTX crash.

For the same reason, US officials recently issued a warning to banks that have cooperation with the cryptocurrency sector.

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