Signature Bank will no longer support crypto transactions under $100,000, which will have a significant impact on Binance users who will now have to find alternative banking options.
On 22, January 2023, Binance announced that Signature Bank would no longer support crypto transactions for less than $100,000. The halt should be effective from 1 February. Despite the disruption, transfers with other fiat currencies such as the EURO are still available.
The banking partner, Signature Bank limits its transactions in an effort to lower the risks associated with digital assets.
Related; Binance Assures Users of Assets Reserves and Zero Debts
Binance responds to the matter
The world’s largest crypto exchange platform issued a warning to its customers compelling them to trade with USD through SWIFT after the given timeline. However, that would happen if Binance managed to come up with an alternative. The exchange platform also assured its users that they would continue using their credit or debit cards while trading crypto.
A representative from Binance noted that no other banking partners were affected.
Also, read; Coinbase Lays off 950 Employees Amid Crypto Market Downturn
The impact on customers
The decision by Signature Bank is likely to have a significant impact on Binance’s customers with less than $100,000 in crypto assets. These customers will have to look for alternative banking options or use other methods to buy or sell crypto.
Since the announcement clients have withdrawn more than $8.1 billion in deposits of cryptocurrencies. The bank’s shares have also since declined to below 40%
This is not the first time that a bank has taken such a decision, many banks hesitate to support transactions for crypto exchange customers. This move by one of the most well-known banks in the US could lead to more banks taking similar steps in the future. Especially since financial institutions’ concern about the financial contingent facing the crypto industry.
