- The bank’s move comes as it seeks to reduce its exposure to the crypto sector.
- Binance, however, stressed that none of its other financial partners were affected.
The largest cryptocurrency exchange in the world, Binance, stated over the weekend that its fiat partner Signature Bank will no longer be processing transactions for amounts less than $100,000. The bank’s move comes as it seeks to reduce its exposure to the cryptocurrency sector.
The recent market instability after the bankruptcy of the crypto exchange FTX has presented significant operating hurdles for crypto banks. Financial institution Silvergate Bank, which specializes in cryptocurrency, has disclosed a $1 billion loss. Conversely, Moonstone, a cryptocurrency bank, has announced that it would no longer be servicing the cryptocurrency industry.
0.01% of Average Monthy Users Serviced
Banks are pulling away from the cryptocurrency industry due to increasing regulatory scrutiny and operational difficulties. Binance, however, stressed that none of its other financial partners were affected. Since “0.01% of our average monthly users are serviced by Signature Bank,” Binance claims there is no need for further concern.
Binance said in a Bloomberg statement:
“One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1, 2023. This is the case for all of their 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 100,000 USD”.
The cryptocurrency trading platform said that it is currently attempting to find an alternate option. Signature Bank, located in New York City, revealed in late December 2022 that it would be shedding over $10 billion in deposits from customers that own digital assets.
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