Retail users of the Binance platform have been placed on a restriction for their USD transfers.
According to an email sent out to users of the platform, Binance fiat partner Signature Bank will not be accepting and approving bank transfers below $100,000 as of February 1. Therefore, any user who intends to either buy or sell cryptocurrency worth less than $100,000 will not be able to complete such transactions through SWIFT.
As it stands, Binance is seeking a new SWIFT USD partner to ensure that its future bank payment transfers are not interrupted at any time.
On the other hand, other non-USD transactions including euro payments will still be processed through the previously existing SWIFT platform. At the same time, credit and debit card payments are still being accepted by customers that wish to either buy or sell digital assets.
Crypto Market Scepticism Heightens
Binance also pointed out that it is not the only affected crypto exchange in this decision of its partner.
“This is the case for all of their crypto exchange clients. Please be advised that until we are able to find an alternative solution, you may not be able to use your bank account to buy or sell crypto with USD via SWIFT with a value of less than 100,000 USD after February 1st, 2023.”
This decision does not affect payments to and from other third-party crypto exchanges. Corporate accounts are equally unaffected by the potential incoming service disruption. Markedly, this decision was not instigated by Binance in any way, the exchange is only a victim of Signature Bank’s decision.
Meanwhile, Signature Bank resorted to this decision in a bid to reduce its exposure to cryptocurrencies which are considered a “speculative asset class.” United States attorney John Reed Stark, believes that this disruption will ignite chaos in the digital market. He, therefore, urged investors to get out of the market similar to what CNBC Mad Money host Jim Cramer said.
“You can’t just beat yourself up and say, ‘hey, it’s too late to sell.’ The truth is, it’s never too late to sell an awful position, and that’s what you have if you own these so-called digital assets,” the TV personality announced.
