Signature Bank Halts SWIFT Transactions Under $100,000 For Crypto Users, Says Binance CryptoBlog

Signature Bank customers facilitating fiduciary transactions with Binance will not be able to make SWIFT transfers under $100,000, according to the crypto exchange.

“One of our fiduciary banking partners, Signature Bank, has indicated that it will no longer support any of its crypto exchange clients with buy and sell amounts below USD 100,000 effective February 1, 2023. “said a Binance spokesperson in an email. statement to Decrypt. “Therefore, some individual users may not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than USD 100,000.”

SWIFT is a vast messaging system that allows banks and other financial institutions around the world to send and receive encrypted information, namely cross-border money transfer instructions.

Only 0.01% of monthly Binance users are served by Signature Bank. Binance’s other banking partners were unaffected, the exchange noted, adding that it is “actively working to find an alternative solution” for affected users.

“Additionally, all other Binance functions are unaffected by this change, and all users can continue to use their accounts. This includes buying and selling crypto using credit or debit cards. , using any of Binance’s other supported fiat currencies (including Euro) and our Binance P2P Marketplace will continue to operate as usual,” the Binance spokesperson added.

Decrypt did not immediately hear from Signature Bank after asking for additional comment.

Signature Bank withdraws from crypto

Signature Bank has been hit hard by recent turmoil in the crypto industry, according to its latest Q4 filing.

In the last quarter of 2022, the firm announcement a decline in customer deposits of around $14 billion, citing its “expected reduction in bank deposits of digital assets” alongside the industry-wide chaos. In the last quarter, the markets were shaken by the highly publicized collapse of FTX and a series of legal fees against the disgraced founder of the stock exchange, Sam Bankman-Fried.

Despite a strong year-to-date rally, with Signature Bank (SBNY) stock rising from $113 on Jan. 3 to $127 on Jan. 20, the past year has been a brutal one for the bank.

On January 24, 2022, the NASDAQ-listed stock traded above $314.

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