Ban on Crypto Trading Transfers Under $100K by Binance Banking Partner

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Clients of a bank that works with Binance to facilitate fiat transactions won’t be able to trade cryptocurrencies through SWIFT transfers of less than $100,000.

In order to limit exposure to digital assets, the financial institution will implement the transaction minimum in February.

A $100,000 transaction minimum is imposed on cryptocurrency traders by a bank that partners with Binance.

Beginning on February 1st, a bank that serves some customers of Binance, the largest cryptocurrency exchange in the world, will only process customer transactions that total above $100,000.

One of our fiat banking partners, Signature Bank, has informed us that as of February 1, 2023, it would no longer provide service for any of its cryptocurrency exchange customers with transactions totaling less than $100,000.

This is the situation for all of their customers who use cryptocurrency exchanges, Binance explained in a statement published with Bloomberg on Saturday.

Therefore, it’s possible that certain individual users won’t be able to use SWIFT bank transfers to buy or sell cryptocurrency with/for USD for sums under $100,000 USD.

Customers were assured by the exchange that it is actively looking for a new partner for SWIFT transfers in US dollars. The measure affects retail traders with accounts serviced by Signature.

According to a spokesman for the cryptocurrency company, only 0.01% of Binance’s monthly users are serviced by Signature Bank, and no other banking partners are affected.

The announcement comes after the New York-based Signature Bank stated in December that it planned to withdraw from the cryptocurrency business and lose up to $10 billion in deposits from clients who hold digital assets.

When consumers withdrew more than $8 billion in digital asset deposits in Q4, 2022, Silvergate Capital, the parent firm of California-based Silvergate Bank, which handles crypto transactions, suffered a 40 percent decline in share price.

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