During the course of yesterday, Binance contacted a portion of its users who were informed that one of its partners, Signature Bank, will stop handling “national currency-to-cryptocurrency” transactions that will have a value of less than 100 thousand dollars.
This new bank policy will take effect on February 1 and is intended to limit the bank’s exposure to cryptocurrencies. Signature Bank, an institution that offers financial services targeted at small businesses and retail customers at the executive level, suffered a 64% drop in its share price in 2022.
With the goal of reducing by billions
Signature Bank also provided services to FTX, which is known to have completely collapsed. In order to avoid finding itself in such a difficult position again, it appears to be attempting to dump up to $10 billion in deposits belonging to companies and investors heavily involved in cryptocurrencies.
Who is affected?
As a result of this new Signature Bank policy, some Binance users may, temporarily, be unable to buy or exchange cryptocurrencies for national currencies using the SWIFT channel. Of course, this does not affect exchanges between cryptocurrencies or the ability of this portion of users to transfer their assets to another platform and cash them out.
Binance stressed that Signature Bank’s policy change will only affect about 0.01% of its user base, and that the group is actively seeking a solution for those who will find themselves without an option to withdraw in national currencies in about a week.