Binance has informed its customers that its banking partner Signature Bank will not process crypto transactions worth below $100,000, said a Bloomberg report. However, other partner banks will continue to offer regular banking services as before.
According to the report, the decision was made to reduce the risk of money laundering and other illegal activities on the platform. Signature Bank had been processing transactions below $100,000, but has now decided to stop, it said.
Although crypto markets have been on a rebound lately, financial institutions are cautious and on their guard after the implosion of FTX. In a statement, Federal Deposit Insurance Corporation (FDIC) has said that offering services to crypto products and services by traditional banks should be considered a high-risk activity.
The news comes after Binance’s CEO, Changpeng Zhao, commented on the company’s efforts to improve the security of its platform. He said that the company was focusing on preventing money laundering and other illegal activities on the Binance platform. He also said that the crypto exchange was working with authorities and financial institutions to ensure that it meets all regulatory requirements.
The decision to stop processing transactions below $100,000 is likely to impact traders who use the platform for smaller transactions.
The news of Binance’s banking partner stopping transactions below $100,000 follows a string of recent regulatory actions against the company. In April, the U.S. Department of Justice filed a criminal complaint against the company, accusing it of providing services to unregulated entities. The company has denied the allegations and is currently fighting the charges.