Binance Crypto Exchange has alerted its existing consumers of an approaching service outage that could stall on-ramp and off-ramp bank payment transactions. Users of US Dollar-held bank deposits who wish to purchase or trade cryptocurrencies for less than $100,000 will be affected by the service outage. The interruption will start on February 1.
Binance announced that its fiat partner Signature Bank would no longer recognize bank transfers from less than $100,000
Binance, the major crypto exchange, lately informed clients via email that its fiat partner, Signature Bank, would no longer recognize money transfers of less than $100,000 for its users starting February 1, 2023. As the bank restricts its access to digital asset markets, Signature Bank will only manage user transactions valued at more than $100,000.
The Binance Crypto exchange made clear that this step would actually impact some of its users, especially those trying to purchase cryptocurrencies via SWIFT. Binance writes in its note:
Signature Bank has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1.”
While Signature Bank is one of Binance’s fiat banking partners, the firm says that the remaining of its partners are intact. As a result, the exchange mentioned that “some users may be unable to buy or sell cryptos with/for USD in sums less than $100,000.
The action came after the Federal Deposit Insurance Corporation released a warning about the threats of crypto-assets. The FDIC is the major agency regulator in the United States for banks approved by states that do not relate to the Federal Reserve System. While banking institutions are not forbidden or deterred from offering financial services to clients of any single category or pattern, the FDIC asserted in a Jan. 5 declaration that economic models that are focused on crypto-asset-related operations or have centered levels of exposure to the crypto-asset industry enhance its effectiveness security and reliability fears.