Binance’s partner bank (Signature Bank) is ceasing to process SWIFT payments in fiat dollars of exchange users below $100,000. In this way, the organization plans to reduce the impact of the digital asset market on its business. Writes information about it Bloombergreferring to the statement of the cryptocurrency platform.
“As a result, some users will not be able to use SWIFT bank transfers to buy or sell digital assets against the US dollar if the volume does not exceed the specified threshold,” the agency quoted the company as saying.
Also in an interview with Bloomberg, a Binance representative said that the restrictions would not affect other banking partners in the SWIFT system. And Signature Bank “serves 0.01% of the average monthly number of users of the exchange”, and the company is “actively working to find an alternative solution.”
On twitter, some exchange customers are already writing that they have received an email from the exchange warning about the restrictions being introduced.
CONFIRMATION THAT BINANCE HAS BEEN CUT OFF FROM SWIFT FOR USD TRANSFERS IN MULTIPLE COUNTRIES: https://t.co/PdUrq5Cghf pic.twitter.com/O6Yum7749g
— DIRTY BUBBLE MEDIA: THE WALLED GARDEN (@MikeBurgersburg) January 21, 2023
He writes about the reasons for such decisions. The Wall Street Journal. According to their information, Signature Bank and another lender serving companies in the digital asset sector (Silvergate Bank) are actively raising loans from a consortium of mortgage banks. Federal Home Loan Banks.
The fact is that in the fourth quarter of 2022, Signature Bank raised about $10 billion, Silvergate Bank received almost $3.6 billion. Journalists noted that organizations need funds to prevent the occurrence of banking panic.
For the fourth quarter of 2022, the net loss of Silvergate Bank exceeded $1 billion.
