Binance banking partner to ban crypto transfers under $100k

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Binance banking partner to ban crypto transfers under $100k

In a statement released via Bloomberg on Saturday, Binance announced that one of its banking partners would stop supporting any crypto exchange worth less than $100,000 after February 1, 2023.

The move will prevent users from using SWIFT, the most extensive international bank transfer system, to purchase or exchange cryptocurrency with an amount lower than $100,000 per transaction. Binance emphasized that this change will affect all cryptocurrency exchanges with Signature Bank, not just Binance exchanges.

As one of the largest banking partners in the industry, Signature has previously partnered with exchanges other than Binance, including Coinbase Crypto, Kraken, Circle, and the now-defunct FTX.

Signature had earlier announced plans to pull back from the crypto industry in December, cutting back on up to $10 billion in deposits worth of digital assets. The decision came following the bankruptcy of Binance’s former competitor, FTX — an event that led to a tumultuous period in the crypto industry.

Binance noted that the withdrawal would only affect 0.01 percent of its users. No other banking partners have been affected so far.

Little effect and impact

Signature, a New York-based company, suffered substantial losses in the previous quarter, paying out over $8.1 billion worth of digital asset withdrawals and losing 64 percent of its stocks.

Other traditional finance companies have also struggled to keep up with crypto’s tumultuous last quarter. For example, the Californian-based Silvergate Bank saw over $8 billion in asset withdrawals and a 40 percent share loss.

Signature’s decision to limit SWIFT support from Binance has yet to impact Binance’s exchange value. According to CoinMarketCap, the BNB token has only lost 0.11 percent of its value in 24 hours, sitting at $302.89.

Despite the calm, some watchers have suggested that Signature’s actions may be a preamble to further issues. Some analysts noted that Binance dealt with Signature through an account belonging to a defunct Seychelles-based company.

It is, however, only speculation, and investors are advised to be wary for now.