According to one Reports By Bloomberg, cryptocurrency exchange Binance has announced that one of its fiat trading partners, Signature Bank, will no longer process transactions of less than $100,000 as the bank seeks to reduce its exposure to the cryptocurrency market. .
Binance said this is a widespread process that affects all crypto exchanges that work with Signature Bank. And that members of its customer community whose accounts are serviced by the bank are immediately making efforts to find an alternative solution.
“One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with purchases and sales of less than 100,000 USD until February 1, 2023. This is for all of them. Exchange clients. As a result, some individual users cannot use SWIFT bank transfers to buy or sell crypto for amounts less than USD 100,000,” Binance said in a statement sent to Bloomberg News on Saturday.
Signature Bank is one of the crypto industry’s largest fiat banking partners with support from several industry giants including Binance, Kraken, Coinbase, Circle and the now bankrupt FTX exchange.
After heavy losses in the crypto market in 2022, Signature Bank lost nearly 64% of its share price ( SBNY ) after paying $8.1 billion worth of digital assets in service of withdrawal orders during the last quarter of the year.
To avoid similar losses in the future, Signature Bank has begun a massive divestment from the cryptocurrency industry. To that effect, the New York-based bank also plans to volunteer. to reduce Its crypto deposits range from $8 billion to $10 billion.
How does signature bank action affect Binance Coin (BNB)?
Following Binance’s announcement of Signature Bank’s minimum transaction limit, the BNB token has not been significantly affected. According to CoinMarketCapBNB is trading at $302.89, having lost just 0.11% of its value in the last 24 hours.
BNBUSD trading at $303.0 Source: BNBUSD Chart on Tradingview.com.
In general, BNB price movements are within the range of expected reactions as signature services only account for 0.01% of the average monthly users on Binance. Thus, there is no need to panic among investors.
However, it may be too early to tell the full impact of the BNB token signing process, especially considering the ongoing social media rumors about Binance’s “true” relationship with the American banking giant.
Binance in trouble?
Apparently, it is Did you believe According to some crypto enthusiasts, Binance has been dealing with signatures through an account belonging to a Seychelles-based company called “KeyVision Development Limited” which has been defunct since September 2021.
According to rumors, the signature bank imposed a minimum transaction limit of $100,000 on crypto transactions only after Binance forcibly closed the “phony” account. anything to say Binance is the only exchange affected by this new transaction limit policy, especially since there has been no official statement from Signature Bank’s other crypto exchange clients.
That said, it’s worth pointing out that all these statements are still rumors that haven’t been confirmed by any credible authority. However, Binance users as well as BNB investors are advised to keep an eye on any developments in this space.
Featured image: Chart from Reuters, Tradingview.com
#Binance #Announces #Transaction #Limit #Fiat #Partner #BNB