Binance’s banking partner SWIFT has decided to stop USD wire transfers below $100K. The termination of bank payment transfers will go into effect on 1 February.
The latest information was published by Binance Crypto exchange on 21 January in the form of a letter, where the exchange platform stressed that it is looking for a new SWIFT (USD) partner to avoid this type of disruption.
Binance: the ban on transfers via SWIFT payment system
Retail customers of Binance have now been notified, the SWIFT payment service is discontinuing a certain type of bank payment transfers.
Nonetheless, the world’s largest exchange platform wanted to specify that credit and debit card payments will continue to be accepted. The same is true for non-USD bank transfers, which will be processed through the SWIFT payment system.
SWIFT is a worldwide messaging network that enables financial services corporations to send and receive money transfer instructions and other information quickly and securely.
It all began with Binance’s communication to its users. The exchange platform alerted its customers that the services of Signet Bank have imposed a transaction limit for SWIFT payments, at $100,000. Binance’s notice likewise stated that the decision was not made directly by SWIFT, but rather by the banking partner it relied on for this type of payment.
“Dear Binanciano, We are writing to tell you about a change that may impact the Binance Crypto exchange services you use. What is happening? The banking partner that services our accounts has indicated to us that they will no longer be able to process SWIFT transfers for individuals that are less than $100,000, effective February 1, 2023. This will apply to all cryptocurrency exchange clients [and this is why not just Binance Crypto exchange, NDR].
Until we are able to find an alternative, you may not be able to use your bank account to buy or sell cryptocurrency for values under $100,000 starting Feb. 1, 2023.”
Unfortunately until this issue is resolved, this disruption will impact everyone who is attempting to buy or sell crypto, for less than $100,000, through SWIFT.
Nonetheless, Changpeng Zhao’s platform has been attempting to reassure its users, explaining that this change won’t be affect its corporate accounts.
On the other hand, why this move?
Reports by Bloomberg reports, the banking partner involved, namely Signature Bank, decided to set the minimum transaction limit so high to be able to lower its exposure to the digital investment market.
It is this is why clear that Binance Crypto exchange is not involved in this operation; the platform is exempt from the decision.
In recent weeks, Signature and other financial services corporations have scaled back their engagement in the digital currency markets, partly owing to the ongoing fallout from the implosion of the FTX exchange and other industry debacles.
Binance Crypto exchange stated that 0.01 percent of our average monthly users were served by Signature Bank and that it is actively working to find an alternative solution.
As of 2 February, Binance Crypto exchange will likewise set limitations on NFTs
As of 2 February, Binance Crypto exchange has decided to remove all NFTs with average daily volumes of less than $1,000 from the platform. The notice was published on 19 January, and already currently, Non-Fungible Token (NFT) artists will be allowed to mint only 5 Non-Fungible Token (NFTs) per day.
Binance Crypto exchange has decided to set other regulations regarding Non-Fungible Token (NFTs). Starting 2 February it will in reality ask users, to complete KYC (Know Your Customer) verification and have at least two followers to mint Non-Fungible Token (NFTs) on the platform.
Additionally, the platform stated there will be periodic checks for Non-Fungible Crypto Tokens that do not meet the standards.
“Users may report Non-Fungible Token (NFTs) or collections that may violate Binance Crypto exchange Non-Fungible Token (NFT) minting regulations and terms of service. Our due diligence team will actively review reports of fraud or rule violations, taking appropriate action if necessary.”
The company, after being deemed as well permissive, ended up in the crosshairs of the United States SEC, hence decided to take action. Reports by the SEC, its KYC (Know Your Customer) measures were considered as well lenient.
Consequently, the regulations regarding Non-Fungible Token (NFTs) are becoming stricter on the platform. All Non-Fungible Token (NFTs) listed before October 2022 and with an average daily volume of less than $1,000 will be removed from the exchange.
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