Binance says Signature Bank will introduce $100k transaction limit
Binance reported that Signature Bank won't issue crypto transactions worth less than $100,000 starting February 1, 2023.
Binance said that Signature Bank would only issue crypto transactions worth at least $100,000 starting from Feb. 1, 2023, as reported by Business Standard (BS).
“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 rules will apply to all crypto exchange clients of the bank, and users reportedly won’t be able to use SWIFT to issue crypto transactions that are worth less than the limit, according to BS.
Binance stated that it is “actively working to find an alternative solution” since about 0.01% of its average monthly users are serviced by Signature Bank and will be affected by the new transaction limit, reported to BS.
Signature Bank is the only crypto-friendly U.S. bank that is federally regulated. The bank opened its doors to crypto exchanges, stablecoin issuers, and miners in 2018, which tripled its existing $33.4 billion deposit.
In 2021, the bank became one of the best-performing financial institutions due to the increasing amount of deposits from the crypto industry. However, the mid-2022 crypto winter significantly halted the bank’s growth.
The bank lost $4.27 billion worth of deposits between July 1, 2022, and Sept.7, 2022. The company’s share price also sunk by 49% from the beginning of 2022 until Sept. 2022.
On Dec. 8, 2022, the bank announced that it is shrinking deposits tied to crypto-assets by $8 to $10 billion. The bank also signaled its desire to distance itself from the crypto industry by stating:
“We are not just a crypto bank, and we want that to come across loud and clear,”