Signature Bank Caps Binance SWIFT Transactions to a Minimum of $100k

• The world’s largest crypto exchange Binance has announced that Signature Bank will only handle user transactions of more than US$100,000.
• The FDIC has warned banking institutions over their exposure to digital assets.

Binance customers will soon face new transaction limits on SWIFT payments. Starting February 1, 2023, customers will only be able to sell or purchase cryptocurrency with USD via SWIFT if the transaction is worth at least $100,000.

The new limits are being imposed by Signature Bank, one of Binance’s fiat partners. Signature Bank is reportedly blocking access to all of its “crypto exchange customers.”

Binance has blamed the new limits on “recent regulatory changes” in the United States. The company says it is “actively” looking for a new SWIFT (USD) partner to avoid service delays for future bank payment transfers.

In the meantime, Binance customers will still be able to use their credit or debit cards to purchase or sell cryptocurrencies. Payments will also still be processed to or from third-party exchanges.

The new transaction limits come as banks are increasingly distancing themselves from the cryptocurrency industry. The 2022 bear market has raised concerns about the safety and soundness of the crypto asset sector.

Signature Bank is not the only bank that has taken steps to reduce its exposure to cryptocurrency. In November, Silvergate Bank, a crypto-focused bank, revealed that it had suffered a net loss of $1 billion. The bank was forced to sell its assets at a loss to cover customer withdrawals.

The new transaction limits from Signature Bank are a sign that the cryptocurrency industry is facing increasing scrutiny from regulators and banks. It remains to be seen how the industry will adapt to these challenges in the months and years to come.