Binance, one of the world's leading cryptocurrency platforms, has informed its retail client base of a possible impending service outage that could halt inbound and outbound bank payment transfers. The company indicates that this measure has been taken by the choice of its banking partner and that it will affect other trading platforms. This modification applies to all clients who trade cryptocurrencies.
Changpeng Zhao's exchange advises that starting February 1, 2023, users will not be able to use their bank accounts to buy or sell cryptocurrencies in quantities less than 100.000 dollars via SWIFT.
A change, but not an issue per se
According to a Binance representative, no other banking partners are affected. Financial institutions use the SWIFT network to send information and orders. However, Binance has emphasized that consumers will continue to trade cryptocurrencies using credit or debit cards. Transactions to or from third-party platforms will continue to be handled.
As digital asset markets face economic uncertainty, traditional financial institutions like Signature Bank are concerned about financial contagion in the digital asset market. After the bank announced that its customers withdrew nearly $8.1 billion in digital asset deposits during the fourth quarter, its shares fell as much as 40%.
Last year, Signature Bank shares fell 64% in total. Despite these changes, Binance remains one of the leading cryptocurrency exchanges in the world and is expected to continue to be a leader in the industry as the future progresses.
A 2023 full of hope
Binance has had a rough year due to the collapse of FTX, defamation lawsuits, and the fight to win back the trust of its clients. However, the company's CEO, Changpeng Zhao, has decided to take steps to improve in the future.
In a social media post, Zhao asked his community what they expected to see from Binance in 2023. Users quickly responded with proposals such as a metaverse within Binance and greater audit transparency. The CEO responded to some of the most popular proposals, promising to take them into account.
Despite the challenges, the exchange has shown its commitment to transparency in the past with initiatives like the SAFU fund and Proof of Reserves. Now, by asking users for feedback, the company is taking steps to improve in the future. Only time will tell if it is really taking into account the requests of the community and if it will be able to overcome the challenges of the market.
Now, Binance users will have to look for alternatives to carry out transactions of less than $100,000 through the platform, since Signature Bank has limited this functionality. A decision that has been made due to growing uncertainty surrounding the regulatory environment for crypto assets and concerns about the domino effect caused by the financial declines of 2022.