Binance’s SWIFT banking partner, Signature Bank, announced that it is restricting user transactions due to declining interest. Binance stressed that credit and debit card payments will continue to be accepted.
Binance’s SWIFT banking partner bans USD transfers under $100,000
The cryptocurrency exchange has informed its retail customer base of a potential inbound service outage that could halt bank payment transfers. The service outage will affect dollar-held bank accounts that wish to buy or sell cryptocurrencies under $100,000 through the SWIFT payment system. The cut will take effect from 1 February.
Binance emphasized that they are now “actively looking for a new SWIFT (USD) partner” to avoid service disruptions for future bank payment transfers, in an email announcement on January 21. The cryptocurrency exchange added that this was the decision of the banking partner and that Binance would not be the only exchange affected by the change:
This goes for all crypto exchange customers. Until we find an alternative solution, after February 1, 2023, you may not be able to use your bank account to buy or sell cryptocurrencies less than 100,000 USD via SWIFT in USD.
Credit and debit card payments continue
However, Binance stressed that customers can continue to use their credit or debit cards to buy or sell cryptocurrencies, and payments to third-party exchanges will be processed. The cryptocurrency exchange added that SWIFT-based transfers will remain in operation for non-USD bank transfers such as Euros.
Binance confirms that the change will not affect their “Corporate Accounts”
According to a report published by Bloomberg on January 21, the relevant banking partner was Signature Bank. Bloomberg announced that the bank has set a minimum transaction limit of $100,000 to restrict its involvement with cryptocurrencies.
While the payment service interruption was not Binance’s decision, the exchange recently suspended transfers. Binance recently temporarily froze Solana-based USDT and USDC deposits on November 17. The exchange also temporarily suspended deposits and withdrawals of Ether (ETH) and Wrap-Ether (wETH) for about 10 days prior to the Ethereum merge.
Signature Bank, headquartered in New York, said in December that it plans to raise up to $10 billion from crypto clients as it begins to rapidly withdraw from the cryptocurrency market following the FTX collapse.
The change comes after the Federal Deposit Insurance Corporation warned of crypto risks. In a statement, Binance said it is “actively working to find an alternative solution” and stated that “Signature Bank serves 0.01% of our average monthly users.” cryptocoin.comAs you follow, Binance came to the fore late last year with a US giant dating back to 2018.
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