BlocksInform
According to a report by Bloomberg, crypto exchange BINANCE has announced that one of its fiat trading partners, Signature Bank, will no longer be processing transactions of less than $100,000 as the bank attempts to reduce its exposure to the cryptocurrency market.
Binance stated that this is a general action affecting all cryptography trades dealing with the signature bank. And that efforts are being made to find an immediate alternative for members of the user community whose accounts are managed by that bank.
"a trust banking partner of ours, signature bank, has indicated that it will no longer support any of its crypto exchange clients with the purchase and sale of amounts under US$100,000 as of February 1, 2023. This applies to all their crypto exchange customers. Correspondingly, some individual users may not be able to use swift bank transfers to buy or sell crypto with/for usd for amounts less than 100,000 usd,” the statement sent by binance to bloomberg news on saturday, said.
The signing bank is one of the largest banking partners fiat in the crypto industry in collaboration with numerous industrial giants including binance, kraken, coinbase, circle and exchange ftx now bankrupt.
Due to severe crypto market losses in 2022, Signature Bank lost about 64% of its shares (SBNY) value after paying out $8.1 billion worth of digital assets in service of withdrawal orders during the last quarter of the year.
To prevent similar losses in the future, Signature Bank has started a process of mass withdrawal from the cryptocurrency industry. To this effect, the New York-based bank even plans on voluntarily reducing its crypto deposits by $8 billion to $10 billion.
How does the action of Signature Bank affect the binary currency (NBB)?
After the minimum transaction limit of the binary bank was announced, there was no significant effect on the bnb token. According to CoinMarketCap, BNB is trading at $302.89, having lost only 0.11% of its value in the last 24 hours.
BNBUSD trading at $303.0 | Source: BNBUSD Graphic about Tradingview.com.
Generally speaking, the evolution of the prices of bnb is in the range of an expected reaction as the services of signature represent only 0.01% of the average of the monthly clients on binance. Therefore, not causing investors to panic.
However, it is perhaps too early to know all the effects of the action of the signature on the bnb token, especially if we consider the rumours about the "real" relationship between Binance and the American banking giant.
What's the matter with Binance?
Apparently, it is believed by some crypto enthusiasts that Binance has been dealing with Signature via an account belonging to “Key Vision Development Limited”, a Seychelles-based company that has been defunct since September 2021.
According to rumours, the signing bank imposed a minimum transaction limit of $100,000 on crypto transactions only after the forcible closure of the "fake" binary account. Some also say that Binance is the only exchange affected by this new transaction limit policy, especially since there have been no official statements from other crypto exchange clients of Signature bank.
That said, it is worth saying that all of these statements are still rumours without a credible authority confirming them. However, users of binance and investors of bnb, are invited to monitor developments in this space.
