BREAKING: Binance Reveals SWIFT Network Might Have Cut Access To Crypto Exchange

By Kevin • January 22, 2023 5:57 pm • Comments

It looks like the SWIFT payments network has potentially cut off all fiat currency transfers from bank accounts to crypto exchanges if the transfer value is less than $100,000.

It is unclear if this is just a specific case regarding a particular bank and just Binance or if the change applies to all exchanges & banks.

If it actually happens to be true, this will severely limit the access to cryptocurrency for a very significant amount of people all around the world as many do not have transactions that are greater than $100k.

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There are already many speculations going on from investors as to why this decision was made, but it is probable that the intention is to make have access to crypto difficult for the average person.

The change is supposedly going to go into effect starting February 1, 2023 and Binance happens to be one of the first exchanges to notify customers about this change.

The fact that there hasn’t been much news regarding this change as Binance is the only one that just sent out a notification to its customers over the weekend.

Asiamarkets.com reports:

One of the first crypto giants to notify users of the development this weekend, has been the world’s largest exchange, Binance.

“The banking partner that services your account has advised that they are no longer able to process SWIFT fiat (USD) transaction for individuals of less than $100,000 USD as of February 1, 2023.

This is the case for all their crypto exchange clients,” said Binance.

“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 and sell crypto with USD via SWIFT with a value of less than $100,000 USD.”

Whether or not this change is permanent is still unknown and it is also unclear as to why $100k was the amount that was decided on to be the limit.

It was noted that this could be an indication that CBDCs are starting to roll out soon and that central banks would want to encourage users to use those instead.

However, it seems that no other crypto exchange has announced such a restriction so many from the crypto community are wondering if this is just a restriction on Binance specifically.

The company also started that it was still possible to purchase crypto using other currencies like Euros which has not been affected by the new limitation.

BeInCrypto concludes:

Meanwhile, Signature bank said it was looking to cut its crypto deposits by as much as $10 billion.

Signature Bank’s CEO Joe DePaolo reportedly said the Wall Street bank would reduce these deposits to less than 15% of its total deposits.

On January 5, a joint statement from U.S. financial agencies warned about crypto-asset risks to banking organizations.

The regulators said businesses with concentrated exposure to crypto raise safety and soundness concerns. They added that issuing or holding crypto assets as principal is “inconsistent” with safe banking practices.

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