The global SWIFT payments network changed its rules regarding payments to crypto exchanges. Several banks, including New York’s Signature Bank, will no longer process FIAT currency transfers to crypto exchanges with a value of less than US$100,000 via the SWIFT network, effective from February 1, 2023. This could have widespread implications for cryptocurrencies. The world’s largest crypto exchange, Binance, has already informed its retail customer base.
This change could have a massive negative impact on Binance‘s retail business, especially in those countries where alternative payment systems such as SEPA are not available.
“One of our fiat banking partners, Signature Bank, has advised that it will no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1, 2023. This is the case for all of their crypto exchange clients. As a result, some individual users may not be able to use SWIFT bank transfers to buy or sell crypto with/for USD for amounts less than 100,000 USD,” Binance said in a statement.
Signature Bank announced last week that it was in the process of reducing its exposure to cryptocurrencies.