Binance’s banking partner, Signature Bank, will no longer process fiat dollar SWIFT payments from exchange users below $100,000. 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 fiat banking partners, Signature Bank, has announced that it will no longer support buying and selling of less than $100,000 for crypto exchanges as of February 1, 2023. This applies to all of his cryptocurrency trading platform clients. As a result, some users will not be able to use SWIFT bank transfers to buy or sell digital assets against the US dollar if the amount does not exceed the specified threshold, ”the agency quoted the company as saying.
In a conversation with Bloomberg, a Binance representative noted that the restrictions will not affect other banking partners in the SWIFT system. He also stressed that Signature Bank “serves 0.01% of the average monthly number of users of the exchange”, and the company is “actively working to find an alternative solution.”
Some users have already reported that they received an email from the exchange warning about the restrictions being introduced.
CONFIRMATION THAT BINANCE HAS BEEN CUT OFF FROM SWIFT FOR USD TRANSFERS IN MULTIPLE COUNTRIES: https://t.co/PdUrq5Cghf pic.twitter.com/O6Yum7749g
— DIRTY BUBBLE MEDIA: THE WALLED GARDEN (@MikeBurgersburg) January 21, 2023
According to The Wall Street JournalSignature Bank and Silvergate Bank, another digital asset lender, are actively raising loans from a consortium of mortgage banks Federal Home Loan Banks.
According to the publication, in the fourth quarter of 2022, Signature Bank raised about $10 billion, Silvergate Bank received almost $3.6 billion. Journalists noted that organizations need funds to prevent the occurrence of banking panic.
Recall that in the fourth quarter, the net loss of Silvergate Bank exceeded $1 billion.
Read ForkLog bitcoin news in our Telegram – Cryptocurrency news, courses and analytics.
Found a mistake in the text? Select it and press CTRL+ENTER
