Binance’s SWIFT banking partner will prohibit USD payments of less than $100,000
Binance emphasized that credit and debit card payments would continue to be accepted, and non-USD bank transfers will continue to be handled using the SWIFT payment system.
Binance has notified its retail clientele of a possible service outage that might prevent incoming and outgoing bank payment transfers.
Users of U.S. dollar-denominated bank accounts who utilize the SWIFT payment system to purchase or sell cryptocurrencies for less than $100,000 will be impacted by the service suspension. The inconvenience will begin on February 1.
Binance emailed its “Binancians” on January 21 with the news, emphasizing that they are now “actively seeking” a new SWIFT partner to prevent future service outages for bank U.S. dollar payments.
The cryptocurrency exchange said that this decision was made by the banking partner and that Binance will not be the only trading platform affected:
“This is true for all of their cryptocurrency exchange customers. Please be reminded that if we are unable to identify an alternative solution by February 1, 2023, you may not be able to utilize your bank account to purchase or sell crypto with less than $100,000 USD through SWIFT.”
Binance emphasized that clients would continue to be able to use credit or debit cards to purchase or sell cryptocurrencies and that payments to or from third-party exchanges would continue to be handled.
The cryptocurrency exchange said that SWIFT-based bank transfers for non-USD currencies, such as the Euro, will continue to operate.
Binance verified that the modification will have no effect on business accounts. Bloomberg reported on January 21 that the implicated banking partner was Signature Bank. Bloomberg said that the bank raised the minimum transaction limit to $100,000 to reduce its exposure to the digital asset sector.
The recent suspension of transfers by the trading platform Binance was not due to a decision made by Binance.
On November 17, Binance announced a temporary halt on Solana-based USDT and USDC deposits. Prior to the Ethereum Merge, the exchange also temporarily stopped Ether and wrapped Ether (wETH) deposits and withdrawals for around ten days.