The world's largest crypto exchange, Binance, has announced that Signature Bank will only execute transactions for users with more than $100,000, due to the bank's efforts to reduce its exposure to digital asset markets. Binance said in a statement to Bloomberg News, "One of our fiat banking partners, Signature Bank, has informed us that they will no longer support crypto buying and selling transactions less than $100,000 starting February 1st, 2023. This applies to all crypto exchange customers. As a result, some individual users may not be able to buy or sell crypto using SWIFT bank transfers or transactions under $100,000 in USD." The official from Binance stated that other banking partners are not affected. SWIFT is a network used by financial institutions for transmitting information and instructions.
Concerns about contamination in the digital asset market have also reached traditional finance companies such as Signature and Silvergate Capital. Silvergate Capital saw a 40% drop in its shares when it announced that bank customers had withdrawn approximately $8.1 billion in digital assets in the fourth quarter. Signature's shares dropped 64% last year.
New York-based Signature had announced in December that it plans to withdraw about $10 billion in deposits from digital asset customers due to a widespread retreat from the crypto industry following the FTX explosion.
