Signature Bank pulls SWIFT transfers for Binance users

Signature Bank pulls SWIFT transfers for Binance users

Signature Bank, a partner of Binance, has advised that it will no longer support SWIFT transfers of under $100,000 for the exchange users.

Another day, another FUD story for Binance. This time, it is the news that Signature Bank will no longer provide SWIFT transfers of under $100,000 to the users of Binance.

In an article recently published on Decrypt, it was revealed that Binance had written the following in an email to Decrypt:

“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 1st, 2023. 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.”

According to the article, only 0.01% of Binance users would be affected by the withdrawal of this service. Binance stated that it would be seeking a remedy to the situation.

Given that so few of Binance’s users are using the SWIFT service, its withdrawal for smaller amounts wouldn’t appear to have much impact on Binance at all.

However, Signature Bank seems to be the company that is most affected in this troubled climate for crypto. It was reported in an article in the Business Standard, that the bank was looking at reducing its risk in the cryptocurrency industry in the wake of the FTX collapse.

The bank was reported as saying back in December that it wanted to get as much as $10 billion in deposits from digital asset clients off of its books, as it begins to divest itself from services offered to the crypto industry.

The actions of Signature Bank come on the back of a warning put out by the Federal Deposit Insurance Corporation, advising banks of the risks posed by continuing to provide services to cryptocurrency-related clients.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.