The world’s largest cryptocurrency exchange, Binance, has announced that some users would no longer be able to use SWIFT bank transfers for crypto transactions under $100,000 due to issues with one of its partner banks.
Minimum SWIFT Transfer on Binance Now $100k
In an email, Binance informed some of its users that they would no longer be able to complete SWIFT transfers of less than $100,000 after February 1st. Binance explained that the decision was due to its banking partner.
Binance clarified all users looking to buy or sell crypto under $100,000 via the SWIFT payment system had been affected. However, customers can still use their credit or debit cards to buy or sell cryptocurrencies.
Because the new decision was reached by the bank and not Binance, every other trading platform using Signature Bank (NASDAQ:SBNY) to process SWIFT transfers would similarly be affected.
Binance is in the Market for a New Banking Partner
Confirming that 0.01% of the exchange’s average monthly users are serviced by Signature Bank, Binance says it is “actively working” to find an alternative solution for the SWIFT USD situation.
Binance also explained that no other banking partners are impacted. The exchange adds that this change will not affect all Corporate Account clients, only retail client accounts.
On the Flipside
- The report comes just days after Binance launched an off-exchange settlement solution for institutional clients to lock assets in cold storage that will be reflected on the exchange.
Why You Should Care
The banking partner, Signature, has reportedly been reducing its exposure to crypto, as traditional financial institutions protect themselves from crypto contagion.
Read about Binance’s new institutional client service below:
Binance to Allow Institutional Investors to Keep Collateral Off Exchange
More on the exchange’s expansion in:
Binance to Enhance Local Presence and Compliance in Poland