Binance’s European operations are in trouble as its banking partner, Paysafe Payment Solutions, has decided to withdraw its support for global exchange in about three months.
NYSE-listed Paysafe, a retail payment processor, announced that starting from September 25, 2023, it will no longer facilitate euro-denominated transfers to and from Binance.
As a result of this development, Binance will no longer be able to utilize Paysafe’s embedded wallet solution within the European Economic Area (EEA). The decision by the London-based payments firm comes amidst increased regulatory scrutiny on Binance, with a focus on combating money laundering activities.
“Binance will be changing the provider for EUR deposits and withdrawals via Bank Transfer (SEPA). Our current partner, Paysafe, will no longer be providing these services to Binance users from 25th September 2023. At that time, our users will need to update the banking details used to deposit to their Binance accounts and may be required to accept new terms and conditions to continue using SEPA services after this date,” a Binance spokesperson said.
“In the meantime, all methods of depositing and withdrawing other fiat currencies as well as buying and selling crypto on Binance.com remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance, and buying and selling crypto directly via credit or debit card,” added Binance.
Although Binance plans to find an alternative provider, for the time being, all other methods of depositing and withdrawing fiat currencies, as well as cryptocurrency trading on Binance.com, will remain unaffected.
Paysafe, in its official statement, confirmed the impending change: “Following an extensive strategic review, we have concluded that we will cease offering our embedded wallet solution to Binance across the region. The withdrawal process for this service in the U.K. is already underway.”
Paysafe had been Binance’s banking partner in the UK, facilitating transactions through the Faster Payments network. However, the firm announced in March it will discontinue its services for UK customers of Binance, citing a complex and difficult regulatory environment.
The UK Financial Conduct Authority (FCA) raised concerns over Binance’s partnership with Paysafe as it gives the exchange access to the extensive retail payments network. At the time, banks such as Barclays had withdrawn their support to the exchange, resulting in the suspension of banking services.
Earlier this month, Binance Markets Limited (BML), the UK subsidiary of the world’s largest cryptocurrency exchange, canceled its unused permissions granted by the Financial Conduct Authority (FCA).
As a result, the company will no longer be able to offer regulated activities and products, as confirmed by a statement issued by the regulator. Binance’s UK arm has voluntarily requested the withdrawal of its registration and the process was finalized on May 30, 2023, and is now reflected on the FCA Register.
