Binance to Pause US Dollar Bank Transfers for a Few Weeks

Binance will temporarily pause USD transfers as it looks for a new US-based banking partner to process SWIFT transactions.

• What – Binance will pause US dollar bank transfers to and from its platform on Wednesday the 8^th of February.
• Why – Binance’s banking partner Signature Bank recently advised the cryptocurrency exchange that, as of the 1^st of February, they would no longer be able to process SWIFT USD transactions for individuals of less than $100,000.
• What Next – According to a person familiar with the matter quoted by the Financial press, the suspension could last a few weeks as Binance establishes a new US banking partner that will enable it to resume SWIFT USD transfers.

Binance will pause all USD bank transfers as of Wednesday the 8^th of February, said a spokesperson for the world’s largest cryptocurrency exchange on Monday. The suspension is temporary, and may last a few weeks as Binance establishes a new US banking partner to facilitate payments, a person familiar with the matter told the financial press. “Affected customers are being notified directly”, the Binance spokesperson said, adding that only 0.01% of the platform’s monthly active users use USD bank transfers.

In a separate statement, Binance emphasised that all balances and other platform functions remain unimpacted, “including bank transfer using one of the other fiat currencies supported by Binance (including euros), buying and selling crypto via credit card, debit card, Google Pay and Apple Pay and via our Binance P2P marketplace”. “We are working to resolve this administrative issue as soon as possible and will let you know when we can resume USD deposits and withdrawals as soon as possible.

The pause on USD transfers comes a few weeks after Binance’s US banking partner Signature Bank informed the crypto exchange that it would be setting a $100,000 transfer minimum on SWIFT USD transactions to and from the Binance platform as of the 1^st of February. At the time, Bloomberg reported that Signature Bank made this decision in order to decrease its exposure to the digital asset market. Binance has been looking for a new SWIFT payments system partner ever since.