Binance Expressed: “From February 8th, we will temporarily suspend all USD bank transfers. Only a small proportion of our users will be impacted by this and we are working hard to restart the service as soon as possible. All other methods of buying and selling crypto remain unaffected.”

In response, CZ Binance stated: “While some banks withdrawing support for crypto, other banks are moving in. Some setbacks were expected from last year’s incidents. Long term, keep building.

It is worth noting that USD bank transfers are leveraged by only 0.01% of our monthly active users. However, we appreciate that this is still a bad user experience, and the team is working on quickly resolving this issue.”

Signature Bank

Signature Bank is a New York-based full-service commercial bank with 38 private client offices throughout New York, Connecticut, California, and North Carolina.

Signature Bank engages in the provision of commercial banking services. It operates through the Commercial Banking and Specialty Finance

Signature Bank’s specialty finance subsidiary, Signature Financial LLC, provides equipment finance and leasing.

Signature Bank is one of the fiat banking partners of Binance.  They have stated that they will not support cryptocurrency exchange customer transactions of less than US$100K.  This is the case for all of the Crypto Exchange clients of Signature.

It looks like Signature Bank (SBNY) are reducing their cryptocurrency- related US dollar deposits to decrease their concentration in the cryptocurrency ecosystem.

Joseph DePaolo reportedly have stated, “In the future, our focus will remain on blockchain technology, which is the reason we decided to enter this space in 2018,”

Perceivably, Binance US, a unit of the company, which is regulated by the Treasury Department’s Financial Crimes Enforcement Network is not affected by the suspension. This move will only affect non-US customers who will transfer money off ramp and on ramp from their bank account in dollars.

This news has eventually left outflow of USDT and USDC from Binance Crypto Wallets to other exchanges.

Despite the outflow, Binance is still net positive on the net deposits. There was a bullish market swing which might also be the reason for the outflow.

Customers will still be able to use other fiat currencies or purchase methods to purchase cryptocurrency.

Significant Community Reaction:

• This isn’t a Binance problem, this is an American regulator problem.
• Technology grows faster than regulation you can’t change it.
• USD was by far the cheapest way to buy crypto.