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According to a report By Bloomberg, crypto exchange Binance has announced that one of its fiat trading partners, Signature Bank, will no longer process transactions under $100,000 as the bank tries to reduce its exposure to the crypto market. currency.

Binance said this is a broad action affecting all crypto exchanges dealing with Signature Bank. And that efforts are underway to immediately find an alternative solution for members of its user community whose accounts are managed by this bank.

“One of our fiduciary banking partners, Signature Bank, has indicated that it will no longer support any of its crypto exchange clients with buy and sell amounts below USD 100,000 effective February 1, 2023. This is the case for all of their crypto exchange clients. As a result, some individual users may not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than USD 100,000,” the statement sent by Binance to Bloomberg News on Saturday reads.

Signature Bank is one of the largest fiduciary banking partners in the crypto industry working with many industry giants including Binance, Kraken, Coinbase, Circle and the now bankrupt FTX exchange.

Following heavy losses in the crypto market in 2022, Signature Bank lost around 64% of its stock value (SBNY) after paying $8.1 billion in digital assets to the withdrawal order service during of the last quarter of the year.

To avoid similar losses in the future, Signature Bank has begun a process of mass withdrawal from the cryptocurrency industry. To this end, the New York bank even plans to volunteer reduce its crypto deposits from $8 billion to $10 billion.

How does Signature Bank’s stock affect Binance Coin (BNB)?

Following Binance’s announcement of Signature Bank’s minimum transaction limit, there was no significant effect on the BNB token. According to CoinMarketCapBNB is trading at $302.89, having lost just 0.11% of its value in the past 24 hours.

binance

BNBUSD is trading at $303.0 | Source: BNBUSD chart on Tradingview.com.

Usually, BNB’s price movement is within the range of an expected reaction, as Signature only serves 0.01% of the average monthly customers on Binance. Thus, not causing panic among investors.

However, it may be too soon to tell the full effects of Signature’s action on the BNB token, especially given the ongoing rumors on social media about Binance’s “genuine” relationship with the US banking giant. .

Binance in trouble?

Apparently it’s believed by some crypto enthusiasts that Binance dealt with Signature through an account belonging to “Key Vision Development Limited”, a Seychelles-based company that has been missing since September 2021.

Rumor has it that Signature Bank only imposed a minimum transaction limit of $100,000 on crypto transactions after it forcibly closed Binance’s “fake” account. some too say that Binance is the only exchange affected by this new transaction limit policy, especially since there have been no official statements from other Signature Bank crypto exchange clients.

That said, it should be clarified that all these statements are still rumors without confirmation by any credible authority. However, Binance users as well as BNB investors are advised to monitor any developments in this space.

Featured Image: Reuters, chart from Tradingview.com





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