According to global crypto exchange Binance, its fiat partner Signature Bank won’t handle transactions that are less than $100,000 for users of cryptocurrency exchanges.
According to Bloomberg, Binance noted, “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 1, 2023.”
The new update is applicable to Binance and all other crypto exchange clients of Signature Bank. Certain individual users, apart from their corporate accounts, might not be able to use SWIFT bank transfers to purchase or sell cryptocurrency for amounts under $100,000 USD.
Binance claimed that Signature Bank provided services to 0.01% of its average monthly users and that it is now actively looking for alternatives.
Meanwhile, users could purchase and sell cryptocurrency using credit or debit cards, using one of the other fiat currencies that Binance supports.
Following the collapse of several crypto firms, the formerly pro-crypto Signature bank instituted a $100,000 minimum transaction threshold in an effort to reduce its exposure to the market for digital assets.
Although the bankrupt FTX crypto exchange’s deposits with Signature made up less than 0.1% of the bank’s total deposits, the partnership between the two led to an almost 20% decline in the share price for Signature in November.