In a recent statement, Binance, the world’s largest cryptocurrency exchange, announced that Signature Bank, a commercial bank based based in New York, has set a minimum transaction amount for its clients following a pullback in the crypto market.
According to Binance, Signature Bank, which controls SWIFT Bank deposits and withdraws on Binance, has informed its clients that it will require a minimum amount of $100,000 for all crypto-related transactions starting Feb 23, 2023. The bank cited the recent market volatility as the reason for the change, stating that it wants to ensure that it is able to properly manage the risk associated with digital assets.
This move by Signature Bank is not entirely unexpected, as many crypto banks including Silvergate, have become increasingly cautious about their involvement in the crypto market in recent months. This is partly due to the fall in the value of cryptocurrencies and the general pullbacks amidst the FTX problems.
Binance, however, has criticized the move, stating that it will make it more difficult for individuals and small businesses to participate in the crypto market. The exchange also emphasized that this type of move by crypto banks could stifle innovation and hinder the growth of the crypto industry as a whole.
Despite this setback, Binance remains committed to providing its users access to a wide range of crypto-related services. The exchange will continue to work closely with banks and other financial institutions to find ways to make it easier for individuals and businesses to participate in the crypto market.