Binance's bank partner begins to ignore transactions below $ 100,000: report

Binance's bank partner begins to ignore transactions below $ 100,000: report

The cryptoma markets show strong signs of relaxation - but not everyone is convinced of it, and the financial institutions are understandably on the hat.

According to the Federal Deposit Insurance Corporation (FDIC), the offering of crypto products and services from traditional banks should be regarded as a risky activity.

"Business models that focus on crypto-asset-related activities or have concentrated engagements in the crypto asset sector, raise significant security and solidity concerns. (We) will continue to monitor crypto-asset-related commitments from banking organizations. publish. "

Binance brings the news

Some banks have apparently received attention to the recent warning, with immediate consequences for customers. Yesterday Binance turned to his user base and informed them that one of his partners, Signature Bank, would be setting Fiat-to-crypto transactions worth less than $ 100,000, according to Bloomberg.

The new guideline comes into force on February 1st because the bank tries to limit its commitment to cryptocurrencies. Signature Bank, an institution that offers financial services for small companies and private customers at the management level, suffered a price drop of 64 %last year

with the aim of reducing billions

The Signature Bank also provided services for the elephant in the room, FTX. In order to address the decline in the crypto industry caused by said elephants, the Signature Bank reports to be deprived of up to $ 10 billion in contributions from companies and investors who have a lot to do with cryptocurrencies.

As a result, some Binance users cannot temporarily buy or exchange cryptos with Fiat. Of course, this does not affect the crypto-to-crypto exchange or the ability of the users to transfer their assets to another platform and to pay out there.

Binance emphasized that the change of guidelines of the Signature Bank will only affect about 0.01 % of its user base and that the team actively searches for a solution for those who would not find a Fiat option in a week.

It is unfortunate that some banks feel the need to distance themselves from crypto because they fear that another industry giant could collapse overnight. Nevertheless, this incident should also serve as a memory of stable institutions that crypto is no longer regarded by financial organizations as immediate gold rush opportunities-and therefore a constant dialogue with these facilities is necessary to keep their decisions unaffected by FUD.

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