- Starting next month, Binance users will no longer be able to make SWIFT transactions below $100,000 as Signature Bank has halted crypto-linked deposits between $8 billion and $10 billion.
- This measure is taken to comply with regulations and regulatory compliance at an international level and affects other exchanges such as bitstamp Nexus and Okcoin.
Binance it has release to its retail customers about the service interruption that allowed SWIFT transactions under $100,000 Americans next month.
In this caseSignature Bank, commercial bank authorized by the state of New York and member of the FDIC, it is precisely the banking partner of Binance and other crypto exchanges, such as OKX, Kraken, eToro, among others, and as a banking partner, is the one that allowed Binance users to execute SWIFT transfers to buy or sell cryptocurrencies.
In December, according to BloombergSignature announced that it would reduce cryptocurrency-linked deposits by between $8 billion and $10 billion USD.
“One of our trustee banking partners, Signature Bank, has reported that it will no longer support any of its crypto exchange clients with buy and sell amounts less than $100,000 starting February 1, 2023.”pointed out the Press release from Binance and added “As a result, some individual users may not be able to use SWIFT bank transfers to buy or sell cryptocurrency with/for USD in amounts less than USD 100,000,” it added.
Binance without problems before this new decision
Nevertheless, apparently this does not represent a serious problem for the crypto exchange given that, according to Binance, only 0.01% of monthly users were served by Signature Bank. Even so, despite this, Binance emphasized that they are “actively working to find an alternative solution” for affected users.
Binance assured that the decision was made by the banking partner and Binance would apparently not be the only cryptocurrency platform affected by the decision.
Nonetheless, The crypto exchange ensures that “all other Binance functions are not affected by this change and all users can continue to use their accounts.
In particular, buying and selling cryptocurrency with credit or debit cards, using one of Binance’s other supported fiat currencies (including Euros), and our Binance P2P marketplace will continue to operate as usual,” the statement explained.
For those unfamiliar, SWIFT, or Society for Worldwide Interbank Financial Telecommunication, is the messaging network that financial institutions use to send and receive information quickly and securely. For example, the type of information that is exchanged between banks might be instructions for cross-border money transfers.
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