Binance’s banking partner to cap USD payments by the exchange’s customers

Binance’s banking partner—Signature Bank—will stop processing SWIFT payments for users of the exchange in fiat US dollars below $100,000. The institution aims to reduce the impact of the digital-asset market on its business, Bloomberg reports, citing a statement from the crypto platform.

“One of our fiat banking partners, Signature Bank, has told us that from February 1, 2023 it will stop supporting purchases and sales below $100,000 for cryptocurrency exchanges. This affects all its clients among crypto trading platforms. As a result, some users will not be able to use bank SWIFT transfers to buy or sell digital assets in US dollars if the amount does not exceed the threshold,” the agency quotes the company’s statement.

In an interview with Bloomberg, a Binance spokesperson said that the restrictions will not affect other SWIFT banking partners. He also emphasized that Signature Bank “serves 0.01% of the exchange’s monthly active users,” and the company “is actively working on finding an alternative solution.”

Some users have already reported receiving an email from the exchange warning of the forthcoming restrictions.

CONFIRMATION THAT BINANCE HAS BEEN CUT OFF FROM SWIFT FOR USD TRANSFERS IN MULTIPLE COUNTRIES: https://t.co/PdUrq5Cghf pic.twitter.com/O6Yum7749g

— DIRTY BUBBLE MEDIA: THE WALLED GARDEN (@MikeBurgersburg) January 21, 2023

According to The Wall Street Journal, Signature Bank and another lender serving digital-asset companies — Silvergate Bank — are actively borrowing from the Federal Home Loan Banks consortium.

According to the report, in the fourth quarter of 2022, Signature Bank raised about $10 billion, while Silvergate Bank received nearly $3.6 billion. Journalists noted that institutions needed capital to prevent a bank run.

Earlier in the fourth quarter, Silvergate Bank’s net loss exceeded $1 billion.

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