Binance's banking partner is backing away from crypto — Signature Bank won't service digital-asset transactions below $100,000

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Binance's banking partner is backing away from crypto — Signature Bank won't service digital-asset transactions below $100,000
  • Binance said its partner Signature Bank will stop handling digital-asset transactions under $100,000, per Bloomberg.
  • The bank's latest move follows plans announced last month to offload as much as $10 billion in crypto deposits.
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Binance's banking partner Signature Bank is extending its pullback from digital assets, and will stop handling transactions smaller than $100,000 starting February, according to Bloomberg.

The New York-based lender's latest move follows plans announced in December to offload as much as $10 billion in crypto deposits to curb its exposure to the tumultuous disruptions in the industry. "We're not a crypto bank ... We don't want to be beholden to any one industry or any one individual client," the bank's CEO Joe DePaolo said at the time.

Signature Bank would "no longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1, 2023," Bloomberg cited from a statement issued by Binance, the world's biggest crypto exchange.

The lender's move to cut back its crypto exposure is the latest sign that financial firms are increasingly wary of contagion risks from disruptions in the digital-asset space, which has seen a string of high-profile bankruptcies including FTX and Genesis.

The bank's share price tanked 64% last year, although it was the best-performing stock in the KBW Nasdaq Bank Index in 2021.

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Signature services only 0.01% of Binance's average monthly users, who can still buy and sell crypto using their credit and debit cards, or through other fiat currencies like the euro, the exchange said in the statement, according to Bloomberg. Binance added that it is "actively looking to find an alternative solution."

Crypto market participants have been on high alert following the implosion of FTX, the now-bankrupt crypto empire founded by Sam Bankman-Fried. Binance has faced scrutiny in recent months as it undergoes investigations by the US Justice Department and after the exchange suffered some heavy customer withdrawals.

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