The cryptocurrency exchange Binance faces more regulatory challenges in Europe as it advises users to convert Euros to Tether (USDT) due to a banking partner’s withdrawal of support.
Paysafe’s Unilateral Decision
Binance revealed that Paysafe, its banking partner, unilaterally decided to halt EUR deposits for Binance users. This decision has prompted Binance to encourage its European users to act swiftly.
Screenshot of the Binance announcement for Paysafe users. Source: Binance
Starting from September 28, Paysafe users will no longer be able to engage in EUR spot trading pairs on Binance, and any open orders will be canceled an hour later. Additionally, the functionality of Binance Convert for EUR transactions will be restricted.
Impact of Paysafe’s Decision
Paysafe had previously facilitated fiat deposits and withdrawals for Binance users in Europe, including transactions through bank transfers within the EU’s Single Euro Payments Area (SEPA). The suspension of Euro deposits by Paysafe on September 25 has necessitated Binance’s prompt action.
Binance has indicated that it is actively working to integrate new fiat channels onto its platform in the near future. This move is aimed at minimizing disruptions for European users who rely on fiat-based transactions.
Ongoing Regulatory and Debanking Challenges
Binance’s recent struggles with regulatory issues and debanking challenges in Western markets continue to accumulate. Paysafe’s withdrawal of support for GBP transactions in May was prompted by concerns raised by U.K. financial regulators. In June, Binance announced its exit from the Netherlands, and soon after, Belgian authorities ordered the exchange to cease its services. However, as of September 26, Binance had reopened new registrations for Belgian residents.
As Binance navigates these regulatory and banking hurdles, the cryptocurrency industry continues to adapt to an evolving landscape in Europe and beyond.