Binance says Signature Bank no longer supports crypto exchange transactions of under US$100,000
Signature Bank will not handle transactions of less than US$100,000 for crypto exchange customers starting in February, according to a statement from the world’s largest cryptocurrency exchange Binance.
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Binance said in an email to Forkast that the new policy will be implemented for all of Signature’s crypto exchange clients.
“As a result, some individual users may not be able to use Swift bank transfers to buy or sell crypto with/for USD for amounts less than US$100,000,” said Binance. Financial services firms use Swift to send and receive money transfers and other financial information securely and quickly.
According to Binance, 0.01% of its average monthly users were serviced by Signature Bank, and it is actively working to find an alternative solution.
Binance users can continue buying and selling crypto using credit or debit cards, using one of the other fiat currencies supported by Binance.Its peer-to-peer marketplace will continue to operate as usual.
Signature’s move follows a trend of traditional financial services firms scaling back their involvement in crypto in the wake of crypto exchange FTX’s collapse. According to Signature, the bank had a deposit relationship with FTX.
Signature Bank’s CEO Eric Howell said the bank would shrink its crypto-related deposits by as much as US$10 billion, in a December conference hosted by Goldman Sachs.
In its end-year results, Signature Bank’s digital asset banking deposits declined US$12.39 billion over twelve months, and lost about US$690 million in the first two weeks of 2023.
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