Binance said Signature Bank will only issue crypto transactions worth at least $100,000 starting February 1, 2023, as reported by the Business Standard (BS).
Binance said:
“One of our statutory banking partners, Signature Bank, has informed us that it will no longer support cryptocurrency exchange customers with trading amounts less than US$100,000 after February 1, 2023.”
According to BS, the new rule will apply to all of the bank’s crypto exchange clients, and users will reportedly not be able to use SWIFT to issue crypto transactions worth less than the limit.
About 0.01% of its average monthly users are served by Signature Bank, and Binance says it is “actively working to find alternative solutions” as it is affected by the new transaction limits reported to BS. I was.
signature bank
Signature Bank is the only federally regulated, crypto-friendly U.S. bank. The bank opened its doors to cryptocurrency exchanges, stablecoin issuers and miners in 2018, when he tripled its existing $33.4 billion deposits.
In 2021, the bank has become one of the best performing financial institutions as deposits from the crypto industry have increased. However, the crypto winter of mid-2022 significantly halted growth for banks.
Banks lost deposits worth $4.27 billion between July 1, 2022 and September 7, 2022. The company’s share price has also fallen 49% from early 2022 to September 2022.
On December 8, 2022, the bank announced that it would reduce deposits related to crypto assets by $8 billion to $10 billion. Banks also demonstrated their desire to distance themselves from the crypto industry by stating:
“We are more than just a crypto bank. We want to make that clear.”
