Binance Banking Partner to Ban Crypto Trading Transfers Under $100K

Binance’s largest cryptocurrency exchange will not allow banks to process transactions for customers exceeding $100,000. This change is effective from February 1, 2018. This new minimum is part of the lender’s plan to limit its exposure in digital-asset markets.

Signature Bank, one of our fiat banking partners has informed that it will not be supporting any crypto exchange customer with less than $100,000 in buying or selling transactions as of February 1, 2023. Binance shared the following statement with Bloomberg on Saturday: “This is the case for all their crypto exchange customers.”

Some users might not be able use SWIFT bank transfers to purchase or sell crypto for USD less than 100,000 USD.

Signature serves retail traders who have accounts. The exchange assured customers that it is actively looking for a partner to facilitate SWIFT transfers in U.S. Dollars. SWIFT is one of the most popular global systems for interbank transfers.

Signature Bank only serves 0.01% of Binance users monthly. No other banking partners will be affected, the spokesperson for the crypto company said. The impact on card payments and non-USD transfer will not be felt.

This news comes just a month after Signature Bank, New York’s bank announced that it would be removing up to $10 million in digital-asset client deposits as part of its pullback from the crypto market. This announcement was made in the wake of the collapse at FTX in Binance’s largest cryptocurrency exchange will not allow banks to process transactions for customers exceeding $100,000. This change is effective from February 1, 2018. This new minimum is part of the lender’s plan to limit its exposure in digital-asset markets.

Signature Bank, one of our fiat banking partners has informed that it will not be supporting any crypto exchange customer with less than $100,000 in buying or selling transactions as of February 1, 2023. Binance shared the following statement with Bloomberg on Saturday: “This is the case for all their crypto exchange customers.”

Some users might not be able use SWIFT bank transfers to purchase or sell crypto for USD less than 100,000 USD.

Signature serves retail traders who have accounts. The exchange assured customers that it is actively looking for a partner to facilitate SWIFT transfers in U.S. Dollars. SWIFT is one of the most popular global systems for interbank transfers.

Signature Bank only serves 0.01% of Binance users monthly. No other banking partners will be affected, the spokesperson for the crypto company said. The impact on card payments and non-USD transfer will not be felt.

This news comes just a month after Signature Bank, New York’s bank announced that it would be removing up to $10 million in digital-asset client deposits as part of its pullback from the crypto market. This announcement was made in the wake of the collapse at FTX in November, when Binance’s main competitor filed for bankruptcy protection due to liquidity problems.

Traditional financial institutions have been stricken by contagion fear during a volatile year in the crypto space. This was due to falling prices and numerous crashes. Silvergate Capital was the parent company for California-based Silvergate Bank, which deals in crypto transactions. It saw its shares drop 40% after customers drew more than $8 billion in digital-asset deposits during Q4 2022.

The report states that Signature’s shares dropped 64% last year. The U.S. Federal Deposit Insurance Corporation (FDIC), issued a warning about the risks associated with crypto assets. In a statement issued in January, the regulator stated that business models that focus on crypto-related activities and expose the crypto-asset marketplace raise safety concerns.

November, when Binance’s main competitor filed for bankruptcy protection due to liquidity problems.

Traditional financial institutions have been stricken by contagion fear during a volatile year in the crypto space. This was due to falling prices and numerous crashes. Silvergate Capital was the parent company for California-based Silvergate Bank, which deals in crypto transactions. It saw its shares drop 40% after customers drew more than $8 billion in digital-asset deposits during Q4 2022.

The report states that Signature’s shares dropped 64% last year. The U.S. Federal Deposit Insurance Corporation (FDIC), issued a warning about the risks associated with crypto assets. In a statement issued in January, the regulator stated that business models that focus on crypto-related activities and expose the crypto-asset marketplace raise safety concerns.