Binance has notified its retail customer base of a potential inbound service disruption that may halt and disrupt bank payment transfers.
The service interruption will affect users of US dollar bank accounts who wish to buy or sell cryptocurrencies for less than US$100,000 through the SWIFT payment system. The cancellation will take effect on February 1.
Binance announced the news to its “Binancians” via email on January 21st, stressing that they are now “actively seeking” a new SWIFT (USD) partner to avoid service disruptions for future bank transfers.
The cryptocurrency exchange added that this is a banking partner decision and that Binance will not be the only trading platform affected by the change:
“This is the case with all their crypto exchange clients. Please note that until we find an alternative solution, you may not be able to use your bank account to buy or sell cryptocurrency for USD via SWIFT below USD 100,000 after February 1, 2023.”
However, Binance emphasized that customers will still be able to use their credit or debit card to buy or sell cryptocurrencies, and that payments to or from third-party exchanges will still be processed.
The cryptocurrency exchange added that SWIFT-based transfers will remain operational for non-USD bank transfers such as the euro.
Binance has confirmed that the change will not affect its “corporate accounts”.
The bank partner involved is Signature Bank, according to to a January 21 Bloomberg report. The bank set a minimum transaction limit of $100,000 in an effort to reduce its exposure to the digital asset market, Bloomberg explained.
Although the suspension of payment services was not Binance’s decision, the trading platform has recently suspended transfers.
Binance recently stored a temporary suspension of Solana-based USDT and USDC deposits on November 17.
While the exchange also temporarily suspended ether (ETH) and wrapped ether (wETH) deposits and withdrawals for about 10 days before the Ethereum merger.
Update Jan 22 00:50 UTC: Added Bloomberg statement.