Binance stressed that credit and debit card payments will continue to be accepted and that non-USD bank transfers would still be processed through the SWIFT payment system.
Binance has informed its retail customer base of a potential incoming service disruption that may halt on and off-ramp bank payment transfers.
The service disruption will impact users of U.S dollar-held bank accounts whare looking to buy or sell cryptocurrencies for less than $100,000 via the SWIFT payment system. The disruption will take effect on February 1, 2023.
Binance announced the news to its “Binancians” by email on Jan. 21, stressing that they’re now “actively seeking” a new SWIFT partner to avoid service disruptions for future bank U.S. dollar transfers.
The cryptocurrency exchange added that this was the banking partner’s decision and that Binance wouldn’t be the only trading platform impacted by the change:
“This is the case for all of their crypto exchange clients. Please be advised that until we are able to find an alternative solution, you may not be able to use your bank account to buy or sell crypto with USD via SWIFT with a value of less than $100,000 USD after February 1st, 2023.”
Binance stressed that customers would still be able to use their credit or debit card to buy or sell cryptocurrencies, and that payments to or from third-party exchanges would still be processed.
The cryptocurrency exchange added that SWIFT-based transfers would remain in operation for non-USD bank transfers, such as the Euro.
Binance confirmed that the change wouldn’t impact corporate accounts.
The banking partner involved is Signature Bank, according to a January 21, 2023 report by Bloomberg. The bank set the minimum transaction limit of $100,000 in effort to decrease its exposure to the digital asset market, Bloomberg explained.
While payment service disruption wasn’t Binance’s decision, the trading platform has suspended transfers in recent times.
Binance recently imposed a temporarily suspension on Solana-based USDT and USDC deposits on November 17, 2022.
The exchange also temporarily suspended Ether (ETH) and wrapped Ether (wETH) deposits and withdrawals for about 10 days ahead of the Ethereum Merge.