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Binance banking partner with SWIFT to block USD payments under $100K.

  • Binance stressed that SWIFT payments for non-USD bank transfers and credit and debit card payments would continue.

  • The crypto exchange also said SWIFT-based transfers for currencies like the Euro will continue. Binance said the adjustment won't affect corporate accounts.

22-Jan-2023 By: Simran Mishra
Binance banking part

Binance emphasised that non-USD bank transfers will still 

Be processed through the SWIFT payment system and that credit and debit card payments would continue to be accepted.

On-ramp and off-ramp bank payment transfers may be halted due to a service disruption, which Binance has warned its retail client base about.

Users with US bank accounts intending to purchase or sell cryptocurrencies for under $100,000 over the SWIFT payment system would be affected by the service interruption. On February 1, the disruption will start to happen.

On January 21, Binance emailed its "Binancians" with the news, emphasising that they are currently "actively seeking" a new SWIFT (USD) partner to prevent service interruptions for upcoming bank payment transfers.

The cryptocurrency exchange emphasised that this was the banking partner's decision and that all of their cryptocurrency exchange clients will be affected by the change, not only Binance. Please be aware that after February 1st, 2023, you might not be able to utilise your bank account to purchase or sell crypto with USD via SWIFT with a value of less than $100,000 USD unless we are able to find a workaround.

However, Binance emphasised that consumers would still be able to purchase or sell cryptocurrencies using their credit or debit card, and that payments to or from third-party exchanges would still be completed.

The cryptocurrency exchange also stated that SWIFT-based transfers for currencies other than the US dollar, like the Euro, would continue to be available. The adjustment, according to Binance, won't affect its corporate accounts.

Involved financial partner is Signature Bank, according to a Bloomberg report from January 21. According to Bloomberg, the bank set the $100,000 minimum transaction threshold in an effort to lessen its exposure to the market for digital assets. Although Binance did not choose to interrupt the payment system, transfers have been halted recently.

On November 17, Binance temporarily suspended USDT and USDC deposits made in Solana.

Ahead of the Ethereum Merge, the exchange also temporarily stopped deposits and withdrawals of both Ether (ETH) and wrapped-Ether (wETH).

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