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 of less than $100,000 as the bank tries to reduce its exposure to the cryptocurrency market.
Binance says this is a broad action that affects all crypto exchanges associated with Signature bank. And efforts are being made to quickly find an alternative solution for the members of the user community whose accounts are served by this bank.
“One of our fiat banking partners, Signature Bank, has advised that it will no longer support crypto exchange customers with purchase and sale amounts of less than 100,000 USD as of February 1, 2023. This is the case for all 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 100,000 USD,” said a statement sent by Binance to Bloomberg News on Friday, it said.
Signature Bank is one of the largest fiat banking partners in the crypto industry in collaboration with many industry giants, including Binance, Kraken, Coinbase, Circle and the now bankrupt FTX exchange.
After a big loss in the crypto market in 2022, Signature Bank lost about 64% of its stock value ( SBNY ) after paying $8.1 billion in digital assets for withdrawal order services during the last quarter of the year.
To avoid similar losses in the future, Signature Bank has begun the process of withdrawing from the cryptocurrency industry. To this effect, the New York-based bank even plans to voluntarily reduce its crypto deposits by $8 billion to $10 billion.
How Bank Signature Actions Affect Binance Coin (BNB)?
After the announcement of the minimum transaction limit of Signature Bank by Binance, there is no significant impact on the BNB token. According to CoinMarketCap, BNB is trading at $302.89, losing only 0.11% of its value in the last 24 hours.
BNBUSD trading at $303.0 | Source: BNBUSD Chart on Tradingview.com.
Typically, BNB price movements are in some of the expected reactions as the Signature service accounts for only 0.01% of the average monthly customer base on Binance. Thus, causing unnecessary panic among investors.
However, it may be too early to tell the full effect of Signature’s actions on the BNB token, especially considering social media rumors about Binance’s “true” relationship with the American banking giant.
Binance In Trouble?
Apparently, it is believe by some crypto enthusiasts that Binance has dealt with Signature through the account of “Key Vision Development Limited”, a Seychelles-based company that has been dead since September 2021.
According to rumors, Signature Bank imposed a minimum transaction limit of $100,000 on crypto transactions only after closing the “fake” Binance account. Some are too say that Binance is the only exchange affected by this new transaction limit policy, especially since there has been no official statement from other crypto exchange clients from Signature bank.
That said, it is worth saying that all these statements are still rumors without confirmation by credible authorities. However, Binance users as well as BNB investors are advised to be alert to any developments in the space.
Featured Image: Reuters, Chart from Tradingview.com