key takeaways:
- Paysafe Payment Solutions, Binance’s euro banking partner, will cease providing services to the world’s largest cryptocurrency exchange on September 25.
- Users must change their bank details used for deposits to their Binance accounts after the deadline.
Binance, one of the world’s largest cryptocurrency exchanges, has suffered a setback in its European operations as its banking partner, Paysafe, terminated their partnership.
Paysafe has stated that it would no longer accept euro deposits and withdrawals via bank transfers as of September 25.
This move has significant implications for Binance and its users, underscoring the challenges faced by crypto exchanges in establishing stable banking relationships in an evolving regulatory landscape.
A representative from Paysafe confirmed the development, stating that the company had made the decision to discontinue its embedded wallet solution for Binance throughout the European Economic Area (EEA) region.
The spokesperson further mentioned that Paysafe and Binance are collaborating to implement a fair and orderly process to terminate the service over the coming months.
The ruling comes just a few days after Belgium’s FSMA alleged that Binance had failed to offer sufficient responses clarifying the nature/amount of services provided by its related firms.
The exact reasons behind Paysafe’s termination of the banking partnership with Binance remain undisclosed. However, it is likely influenced by the increasing scrutiny and regulatory pressure faced by crypto exchanges worldwide.
As regulators tighten their oversight on cryptocurrency activities, financial institutions are becoming cautious about partnering with crypto companies.
The decision by Paysafe may be a strategic move to mitigate potential risks associated with evolving regulatory requirements and maintain compliance with banking standards.
Binance continues to face challenges and obstacles in its growth and operational endeavors in Europe. The termination of its banking partnership with Paysafe adds to the list of difficulties the exchange has encountered.
Recently, Binance withdrew its operating license application in Austria, halted registration processes in Cyprus, and exited the Dutch market after failing to obtain the necessary permits.
Binance has stated that it will provide additional information regarding the situation in due course. In the meantime, the exchange assures users that all existing methods of depositing, withdrawing fiat currencies, and conducting crypto transactions on Binance.com remain unaffected.
These methods include bank transfers using other supported fiat currencies, as well as purchasing and selling cryptocurrencies directly via credit or debit cards. Binance seeks to assure its users that they can continue to engage in trading activities without disruption while the situation with the terminated banking partnership is being addressed.
