Binance’s Fiat Partner Signature Bank Puts A Minimum Transaction Limit
Over the last weekend, the world’s crypto exchange Binance announced that its fiat partner Signature Bank should no longer be processing transactions of less than $100,000. This development comes as the bank is looking to limit its exposure to the digital assets market.
Crypto banks have been facing huge operational challenges amid the current market turmoil following the collapse of the crypto exchange FTX. Crypto-focused Silvergate Bank recently reported a net loss of $1 billion. On the other hand, crypto bank Moonstone is announcing an exit from the crypto market.
As regulatory scrutiny and operational challenges in the space continue to grow, banks are distancing themselves further from the crypto sphere. In a statement to Bloomberg, Binance noted:
“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”.
However, Binance also noted that no other banking partners have been impacted. Binance said that there’s not a greater reason to worry since “0.01% of our average monthly users are serviced by Signature Bank”. The crypto exchange also noted that it’s “actively working to find an alternative solution”.
Signature Bank Moves Away From Crypto
Last month in December 2022, New York-based Signature Bank announced that it intends to shed nearly $10 billion in deposits from digital assets clients. Amid the FTX blowup, Signature Bank is steering on a widespread pullback from the crypto space.
US federal regulator – the Federal Deposit Insurance Corporation (FDIC) – has also warned banking institutions over their exposure to digital assets. It is clear that the contagion fears in the crypto space are now reaching traditional banking institutions.
- Breaking: Bitcoin Hits New ATH Above $125k as ‘Uptober’ Kicks Off in Full Force
- 99.3% of Bitcoin Supply in Profit, Analyst Warns of Short-Term Correction
- Pro-Crypto Mike Selig Emerges As CFTC Chair Frontrunner, Gains Ripple CLO’s Endorsement
- ‘Every Crypto ETF You Can Imagine’: Expert Predicts Flurry of Filings After REX-Osprey’s 21 Applications
- Robinhood Lists Strategy’s Bitcoin-Backed Stocks, Boosting Saylor’s BTC Credit Model
- FLOKI Price Prediction as ETP Listing Drives Adoption—Is a 160% Rally Ahead?
- BNB Coin Price Hits ATH as Derivatives Activity Soars—Is $1,520 the Next Stop?
- Aster Price Eyes $3 After Channel Breakout as Open Interest Surges to $1.37B
- Will XRP Price Hit $5 if the SEC Approves ETFs This Month?
- Bitcoin Price Hits $120K Ahead of Q4 — Can Citigroup’s Forecast Hold Up?
- Pi Network Price at Risk of Another Crash as Mysterious Whale Stops Buying
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
