The reason for the new restriction, which raises the bar for such transfers for most ordinary crypto investors, is that one of Binance’s banking partners is said to be abandoning crypto.
Binance processes SWIFT payments through Signature Bank.
SWIFT is an international payment system that allows banks in different countries to send money to one another.
Binance informed its clients of the new policy in an email sent to affected users, and it also stated that Signature Bank’s new policy will apply to all of its crypto clients. It also stated that it is “actively seeking” a new partner to process its SWIFT payments.
Signature Bank services only “0.01% of our average monthly users,” according to the email.
Binance has yet to publish information about the new policy on its website or on Twitter.
Signature Bank is exiting the cryptocurrency market.
According to a Bloomberg report from Sunday, Signature Bank set the $100,000 minimum limit in an effort to reduce its exposure to the cryptocurrency sector.
The New York-based bank announced in December that it plans to reduce its exposure to cryptocurrency clients by shedding about $10 billion in deposits.
Signature Bank, along with Silvergate, has long been regarded as one of the largest crypto-friendly banks in the United States.
Signature Bank changed its policy in the aftermath of the FTX collapse last year. It also came after the Federal Deposit Insurance Corporation (FDIC), the Federal Reserve (Fed), and the Office of the Comptroller of the Currency (OCC) issued a warning to banks about the risks in the crypto sector.
