Binance users are subject to a significant new restriction. The platform has announced that as of February 1, 2023, its partner Signature Bank will no longer process SWIFT transactions under $100,000. This restriction affects all cryptocurrency exchanges partnering with Signature Bank. Fortunately, Binance has announced that it is already looking for an alternative.
No withdrawals under $100,000 via Signature Bank
Some Binance users may have trouble withdrawing their funds in the near future. The world’s largest exchange is facing a major restriction from its partner Signature Bank. According to a statement from Binance, Signature Bank will only process amounts over $100,000. This measure will take effect from the beginning of February 2023.
Our banking partner has indicated that it will no longer be able to process SWIFT dollar transactions under $100,000 as of February 1.
Binance press release
Binance users should not worry though. Only 0.01% of Binance users are served by Signature Bank. Moreover, only transactions in US dollars are affected by the restriction. The exchange’s services in other currencies are working normally, including with Signature Bank. In order not to prejudice its customers, Binance is already looking for an alternative to Signature Bank.
It should be noted that Binance’s other banking partners have not imposed any restrictions. Moreover, it is not only Binance that is affected by this restriction of withdrawals at Signature Bank. All of Signature Bank‘s partner exchanges will suffer the same fate, Binance informs.
Likely reasons for Signature Bank’s decision
The reasons for Signature Bank‘s restriction of withdrawals from Binance have not been disclosed. However, there are two main reasons for this decision.
On the one hand, the restriction imposed on Binance and other exchanges could be in line with Signature Bank‘s reduction of activities associated with cryptocurrencies. In particular, it will be recalled that in December 2022, Signature Bank announced its intention to get rid of nearly $10 billion in digital customer assets.
“We’re not just a crypto bank and we want to make that crystal clear,” Eric Howel, Signature’s CFO, recently said, announcing at the same time the reduction of its crypto deposits from 23% to 15%.
On the other hand, the restriction on withdrawals by Signature Bank could emanate from the “Belgian company” SWIFT (Society for Worldwide Interbank Financial Telecommunication) to shadow the strong adoption of crypto as the bull market resumes. Indeed, this international payment network is increasingly used as a tool of repression at the disposal of major powers. We have seen this in particular with Iran or Russia. In both cases, SWIFT has clearly stated that it aligns itself with the political decisions of the States. Nothing excludes that it is finally some state authorities who fight the crypto by complicating the withdrawals.
No matter who is acting behind Signature Bank, Binance is prepared to handle the situation better. This is obviously also the case for its competitors. Crypto.com for example has announced to its users that their wallets will be migrated to another provider.
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