Binance’s SWIFT Banking Partner to Disable Support for Transactions Bellow $100K

Retail customers of the largest crypto exchange in the world, Binance, may soon experience a disruption in the on and off-ramp bank payment transfers in USD, the company said in an email sent to its customers on 21 January.

According to the announcement, Signature Bank — one of Binance’s banking partners — has warned that it would no longer support “SWIFT fiat (USD) transactions for individuals of less than 100,000 USD”. The service disruption will not only impact Binance, but all other crypto exchange clients of Signature, with the bank implementing its new crypto policy starting 1 February.

The crypto exchange noted that only 0.01% of its average monthly users were services by Signature, and that it is now “actively seeking” a new SWIFT banking partner for USD in order to avoid service disruption for future bank payment transfers. Binance also confirmed that the bank’s new policy will have no impact on its “Corporate Accounts”, and that all users can continue buying and selling crypto using credit or debit cards, as well as all the other fiat currencies that the exchange supports.

Back in December, Signature Bank — which was among the most crypto friendly banks on the market — said it was seeking to reduce its deposits tied to cryptocurrencies between by $8 billion to $10 billion. In September of last year, roughly 23.5% of Signature’s total deposits came from the crypto industry, but the collapse of FTX — which was a client of the bank — and other companies caused its shares to go down by almost 20% in November.