Binance has informed its retail customer base of the potential for an upcoming service disruption that could halt bank-to-bank payment transactions.
Service disruptions will affect users whose bank accounts are held in US Dollars looking to buy or sell cryptocurrency less than $100,000 through the SWIFT payment system. The disruption will go into effect on February 1.
Binance announced the news to its “Binancians” via email on January 21, noting that they are currently “actively looking for” a new SWIFT (USD) partner to avoid service disruptions for transactions. transfer future bank payments.
Exchanges cryptocurrency added that this is the decision of the banking partner and that Binance will not be the only trading platform affected by the change:
“This is the case for all of their crypto exchange clients. Please note that until we can find an alternative, you cannot use your bank account to buy or sell crypto in USD via SWIFT for less than 100,000 USD after 1 month 2 year 2023.”
However, Binance has emphasized that customers will still be able to use their credit or debit cards to buy or sell cryptocurrencies, and payments to or from third-party exchanges will still be processed. handle.
Letter from Binance to retail users of Binance on January 21. Source: Binance.
The crypto exchange added that SWIFT-based transfers will still work for non-USD bank transfers, such as Euros.
Binance confirms this change will not affect “Corporate Accounts”.
The banking partner involved is Signature Bank, as reported Jan. 21 by Bloomberg. Bloomberg explained that the bank set a minimum transaction limit of $100,000 in an effort to reduce its exposure to the digital asset market.