Binance Banking Partner Will Ban Crypto Trading Transfers Under $100K
Starting on the first of February, a bank serving some customers of the world’s largest crypto exchange, Binance, will process transactions for just over a million customers. The new minimum law will be implemented as lenders decide to limit their exposure to the digital asset markets. Exchange client crypto exchange Binance shared its statement in an interview with Bloomberg on Saturday, saying that “it has been advised by Signature Bank, one of our fiat banking partners, not to allow any of its crypto exchange customers to deposit 100000 USD by February 1, 2023.” and this is the case for all their cryptos. As a result some individual users have used SWIFT bank transfers to buy or sell cryptos with USD for amounts less than 100000 USD. This measure of course pertains to and pertains to retail traders who have accounts serviced by Signature and also to customers assured by the Exchange that it is actively trading in US Dollars in SWIFT. Is looking for a new partner for transfers. SWIFT is the most widely used and globally used system for inter banking transfers. Through a spokesperson of the crypto company, it was told that Only 0.01% of Binance’s monthly users are served by Signature Bank while no other banking partners are affected and card payments and non-USD transfers will not be affected. In December New York-based Signature Bank revealed it plans to collect up to $10 billion in digital assets from customer deposits as it pulls back from the crypto industry and the move is sure to be announced amid a wave of crypto exchanges and bankruptcy. This was done after the company that filed for it was definitely a strong competitor of Binance. Fears of contagion have gripped traditional financial firms during a turbulent year with falling prices and multiple crashes to go into space. SilverGate Capital, the parent company of California-based Silvergate Bank that deals with crypto transactions, reported a 40% drop in its shares after customers withdrew over $8 billion in digital asset deposits in 2022.
Signature shares fell 64 percent last year and its decision comes after the USA Federal Deposit Insurance Corporation warned about the risks associated with crypto assets. The regulator issued a statement in early January saying that the business model focused on crypto assets related activity or the exposure to the crypto market raises security and public concerns.
