Binance has been dealt another blow as its euro banking partner, Paysafe Solutions, has announced its decision to cease supporting payments for the exchange.
This latest development comes in the wake of the UK’s financial regulator expressing worries about the exchange’s use of the country’s payment network.
Effective September 25, users will be required to utilise new banking details for making euro deposits into their Binance fiat wallet. The exchange has also cautioned users about the possibility of having to accept revised terms and conditions.
While this decision affects only the euro deposits and withdrawals facilitated by Paysafe through Bank Transfer (SEPA), Binance has clarified that it will not impact other fiat deposits or withdrawal services.
The partnership between Binance and Paysafe, established in January, enabled the cryptocurrency exchange to access the Faster Payments Service, a payment network connecting UK financial service providers. Additionally, the collaboration granted Binance access to the SEPA payment network.
However, the Financial Conduct Authority (FCA) expressed concerns regarding the arrangement, as detailed in a report by the Financial Times. The FCA confirmed that Paysafe was aware of the concerns raised and that the company was under close supervision.
Unregulated cryptocurrency firms, such as Binance, have long grappled with securing payment services through fiat currencies. Heightened scrutiny from regulators, including the FCA, has compelled banks and financial service providers to withdraw their support. Binance’s global regulatory challenges have only exacerbated the situation.
Notably, Binance, along with its affiliated entities and its CEO and Co-Founder, Changpeng Zhao, currently faces multiple charges brought forth by the US Securities and Exchange Commission (SEC). Allegations against the exchange include operating an illegal trading platform, offering unregistered securities, and commingling customers’ funds.
Since the SEC filed its lawsuit against Binance, the FCA has revoked several permissions granted to the exchange’s UK affiliate. Furthermore, Binance has made the decision to exit the Netherlands and Cyprus, while in Belgium, the regulator has issued an order for Binance to halt its operations. Meanwhile, the company faces allegations of money laundering in France.
