Signature Bank customers facilitating fiat transactions with Binance will not be able to make SWIFT transfers of less than $100,000, according to the crypto exchange.
“One of our fiat banking partners, Signature Bank, has notified that it will no longer support any of its crypto exchange clients with buy and sell amounts below USD 100,000 as of February 1, 2023,” a Binance spokesperson said in an email statement to Decryption. “As a result, some individual users may not be able to use SWIFT wire transfers to buy or sell crypto with/for USD for amounts below USD 100,000.”
SWIFT is an extensive 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 Binance’s monthly users are served by Signature Bank. Other banking partners of Binance were not affected, the exchange noted, adding that it is “actively working to find an alternative solution” for affected users.
“Furthermore, all other features of Binance are not affected by this change and all users can continue to use their accounts. In particular, buying and selling cryptocurrency via credit or debit card using one of the other fiat currencies supported by Binance (including the Euro) and our Binance P2P marketplace will continue to operate as usual,” the Binance spokesperson added.
Decryption Signature Bank was not immediately heard from when reached for further comment.
Signature Bank pulls back from crypto
Signature Bank has been hit hard by the recent turmoil in the crypto industry, according to its latest Q4 filing.
In the final quarter of 2022, the firm announced a decline in customer deposits of approximately $14 billion, citing its “planned decline in digital asset banking deposits” alongside industry-wide chaos. In the past quarter, markets were rocked by the high-profile collapse of FTX and a raft of lawsuits against the exchange’s disgraced founder, Sam Bankman-Fried.
Despite a strong rally since the start of the year, with shares of Signature Bank ( SBNY ) rising from $113 on January 3 to $127 on January 20, the past year has been brutal for the bank.
On January 24, 2022, the NASDAQ-listed stock was trading at more than $314.
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