Binance Alters SWIFT Transfer Policy Impacting Crypto Transactions

Binance's New SWIFT Transfer Policy

Binance, the world's largest cryptocurrency exchange, has announced changes to its SWIFT bank transfer policy. Starting February 1st, users will be unable to conduct SWIFT transactions under $100,000. This decision stems from complications with one of Binance's banking partners.

Impact on Crypto Transactions

The policy impacts all users intending to buy or sell cryptocurrencies via SWIFT for amounts below $100,000. Despite this restriction, customers retain the ability to use credit or debit cards for cryptocurrency transactions. The limitation is not exclusive to Binance; other platforms utilizing Signature Bank for SWIFT transfers will also face similar restrictions.

Binance's Search for New Banking Partners

Currently, only a small fraction—0.01% of Binance's average monthly users—are affected by Signature Bank's policy. Binance is actively seeking alternative solutions to address the SWIFT USD issue and ensure uninterrupted service for its users. It is important to note that this change primarily affects retail accounts, leaving Corporate Account clients unaffected.

Recent Developments and Context

This update follows Binance's recent launch of an off-exchange settlement solution designed for institutional clients. The solution allows clients to secure assets in cold storage while still reflecting balances on the exchange. The changes highlight the ongoing adjustments within the crypto industry, as traditional financial institutions aim to minimize exposure to potential crypto risks.

These developments underscore the dynamic nature of the cryptocurrency landscape and Binance's proactive approach to adapting to regulatory and market changes. The search for a new banking partner remains a priority to ensure seamless transactions for Binance users.