• Binance, one of the largest crypto exchanges, has announced that one of its fiat trading partners, Signature Bank, will no longer be processing transactions of less than $100,000.
• This is part of Signature Bank’s efforts to reduce its exposure to the cryptocurrency market.
• Binance is looking for an alternative solution for its user community whose accounts are serviced by this bank.
Binance, one of the world’s largest cryptocurrency exchanges, has recently announced that one of its fiat trading partners, Signature Bank, will no longer be processing transactions of less than $100,000. This is part of the bank’s efforts to reduce its exposure to the cryptocurrency market.
Signature Bank is one of the biggest fiat banking partners in the crypto industry, with collaborations with many top-tier exchanges, including Binance, Kraken, Coinbase, Circle and the now-bankrupt FTX exchange. Following the losses in the crypto market in 2022, Signature Bank lost about 64% of its shares (SBNY) value after paying out $8.1 billion worth of digital assets in service of withdrawal orders during the last quarter of the year.
In order to avoid similar losses in the future, the New York-based bank has begun a massive withdrawal process from the cryptocurrency industry, and as such, has asked Binance and other crypto exchanges to immediately stop processing transactions of less than $100,000.
Binance, in response to this statement, said that it is working to find an alternative solution immediately for its user community whose accounts are serviced by this bank. The exchange also noted that this is a broad action affecting all crypto exchanges dealing with Signature Bank.
This move has caused some degree of concern among crypto traders and investors, as it may limit their access to crypto trading services. Many investors are also worried about the future of the crypto market and whether this move by Signature Bank could be the first of many similar withdrawals from the industry.
Only time will tell what will happen, but for now, it is clear that Signature Bank is taking a more cautious approach to the cryptocurrency market. Binance and other exchanges are also doing their best to ensure that their users are not affected by this move and are looking for alternative solutions.