Binance Banking Partner to Limit USD Payments of Exchange Customers

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Binance’s banking partner, Signature Bank, will no longer process fiat dollar SWIFT payments from exchange users in the amount of less than $100,000. The organization wants to reduce the impact of the digital asset market on its business, Bloomberg reports citing a statement from the cryptocurrency platform.

“One of our fiat banking partners, Signature Bank, has announced that it will no longer support buying and selling of less than $100,000 for crypto exchanges as of February 1, 2023. This applies to all of his cryptocurrency trading platform clients. As a result, some users will not be able to use SWIFT bank transfers to buy or sell digital assets against the US dollar if the amount does not exceed the specified threshold, ”the agency quoted the company as saying.

In a conversation with Bloomberg, a Binance representative noted that the restrictions will not affect other banking partners in the SWIFT system. He also stressed that Signature Bank “serves 0.01% of the average monthly number of users of the exchange”, and the company is “actively working to find an alternative solution.”

Some users have already reported that they received an email from the exchange warning about the restrictions being introduced.

According to The Wall Street Journal, Signature Bank and another digital asset lender, Silvergate Bank, are actively raising loans from mortgage bank consortium Federal Home Loan Banks.

According to the publication, in the fourth quarter of 2022, Signature Bank raised about $10 billion, Silvergate Bank received almost $3.6 billion. Journalists noted that organizations need funds to prevent a banking panic.

Recall that in the fourth quarter, the net loss of Silvergate Bank exceeded $1 billion.

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