Binance will no longer allow buying or selling crypto below $100,000 via SWIFT starting February 1. The crypto exchange cited an undisclosed financial partner as the cause of the new choice. It claimed that the bank’s customers who use cryptocurrency exchanges will now have limited access.
According to a Bloomberg report, Binance’s unknown financial client is Signature bank. The exchange clarified that the change would not affect other services or corporate accounts, and users can still buy crypto using credit/debit cards and other fiat currencies. Additionally, the exchange is exploring alternative options for SWIFT USD transactions.
Binance: Finance Firms Fear Crypto Impact
Traditional financial institutions like Silvergate Capital and Signature Bank are distancing themselves from the crypto industry to protect themselves from potential adverse effects. Despite previously being supportive of crypto, recent events have caused these banks to reevaluate their positions.
Silvergate, a leading crypto bank, experienced a bank run. It posted a $1 billion net loss in Q4 following the collapse of FTX. To ensure its business remains resilient, the bank is now cutting ties with specific non-core customers. It is also reducing its product offerings.
Recently, Silvergate disclosed that it has a $2.5 million commitment to the defunct crypto lender Genesis. Additionally, Signature Bank plans to cut crypto deposits by $10 billion and bring them to less than 15% of total deposits, CEO Joe DePaolo said.
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US financial agencies warned about the risks of crypto assets to banking organizations and said that holding crypto assets is inconsistent with safe banking practices.