- Binance adds a minimum limit of $100,000 for buying cryptocurrencies
- Binance announced that Signature Bank was limiting its involvement in cryptocurrencies.
- As a result, the crypto platform’s fiat partner will only execute orders worth $100,000 or more.
The exchange clarified that some of its users would be affected by this move, especially those trying to buy cryptocurrencies via SWIFT.
Binance clarified in a note to Bloomberg that its Signature Bank has levied limitations on buying cryptocurrencies. This decision from the New York-based bank comes after the cryptocurrencies lost roughly $2 billion in market capitalization in roughly a year.
Binance users face troubles
Binance will be limiting some users from purchasing cryptocurrencies if the orders are not worth $100,000 or more. This limitation is occurring since the exchange’s fiat banking partner, Signature Bank is looking to limit its exposure to cryptos.
In its note, Binance says,
Signature Bank has advised that it will not longer support any of its crypto exchange customers with buying and selling amounts of less than 100,000 USD as of February 1."
While Signature Bank is one of Binance’s fiat banking partners, it says that other partners are unaffected. So the exchange said that “some individual users may not be able to” purchase or sell cryptos with/for USD for “amounts less than $100,000.
Will this news impact BNB price?
Cryptocurrencies, including Binance Coin, have rallied quite a lot in the last few weeks. The bullishness has caused the entire market to trigger an uptrend. However, as the Bitcoin price cools off, the risk of a reversal is starting to increase. Despite Signature Bank’s limitations, altcoins are already looking ready to reverse.
BNB price set up a range, extending from $249 to $318 in late November 2021. The 2023 rally propelled Binance Coin price by nearly 30%, which has not only allowed the altcoin to recover into the range but is in proximity to sweeping the range high.
Although the Relative Strength Index is showing a weakening trend, there might be a quick run-up to sweep the $318 level. A premature reversal could knock BNB down to the midpoint of the range at $283.
BNB/USDT 1-day chart
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin: Retraces to around $75,000 after hitting new all-time high
Bitcoin (BTC) edges slightly down on Thursday and trades at around $74,900 after hitting a new all-time high (ATH) of $76,400 on Wednesday, buoyed by the victory of the crypto-friendly candidate Donald Trump in the US presidential election.
Ethereum price jump spurs most significant ETF inflows in six weeks
After a positive momentum in crypto markets following the outcome of the US presidential election, spot Ether exchange-traded funds (ETFs) in the United States saw their highest inflows in six weeks.
Top trending meme coins PEPE, BONK, and FLOKI achieve double-digit gains following Trump’s victory
The prices of top trending meme coins Pepe (PEPE), Bonk (BONK) and FLOKI (FLOKI) experienced double-digit gains following Trump’s victory on Wednesday. The technical outlook suggests that the three meme coins hover around key levels, and the breakout could push these coins higher.
Coinbase’s Paul Grewal urges SEC to embrace change on crypto after Trump's victory
Paul Grewal, Coinbase's Chief Legal Officer, has asked the US Securities & Exchange Commission to reconsider how it regulates cryptocurrencies now that Donald Trump has been elected to a second term as president.
Bitcoin: New all-time high at $78,900 looks feasible
Bitcoin price declines over 2% this week, but the bounce from a key technical level on the weekly chart signals chances of hitting a new all-time high in the short term. US spot Bitcoin ETFs posted $596 million in inflows until Thursday despite the increased profit-taking activity.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.