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The signing bank will not process transactions under $100,000 for crypto exchange clients, according to a giant exchange binary statement.
Binance said in the statement emailed to CoinDesk that Signature had told the company that it “would no longer support “any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as on the first of February, 2023," and that would be true for "all crypto exchange customers of Signature.”
"As a result, certain individual users" may not be able to use SWIFT wire payments to buy or sell digital assets "with/for USD" for smaller amounts.
Binance reported that 0.01% of our average monthly users were serviced by the signature bank, and that it was actively working on finding an alternative."
The company added that users could continue to use their accounts, including "purchasing and selling crypto using credit or debit cards, using one of Binance's other fiat currencies."
Bloomberg brought it back first.
Swift is a worldwide messaging network that enables financial services companies to send and receive money transfer instructions and other information quickly and safely.
In recent weeks, Signature and other financial services firms have been ratcheting back their involvement in crypto markets, part of the ongoing fallout from crypto exchange FTX’s implosion and other industry debacles.
In December, the signature, which was among the most crypto-friendly banks on Wall Street, said it would reduce its cryptocurrency-related deposits from 8 billion dollars to 10 billion dollars.
Read More: Crypto Bank Silvergate Shares Plunge 46% After $8.1B Withdrawal in Q4 Prompts 200 Job Cuts
Almost one-quarter of the Bank of New York's $103 billion in deposits, or approximately 23.5 per cent, came from the crypto industry in September 2022. But taking into account the recent "problems" in space, the signing will reduce this amount to less than 20 per cent and possibly to less than 15 per cent, signing CEO said at a New York conference organized by goldman sachs investment bank.
Ftx was a client of the bank, although the deposits of the crypto exchange with signature amounted to less than 0.1% of the bank's total deposits. Nevertheless, the relationship between the two led to a nearly 20% drop in Signature equities in November.
