Binance’s EUR banking partner to halt support.
- Paysafe is currently Binance’s banking partner for EUR transactions.
- Starting from September 25th, 2023, Paysafe will no longer offer services to Binance users.
- This announcement comes shortly after Binance.US’s banking partners warned that they would discontinue their services.
According to a notification sent to Binance users, Paysafe Payment Solutions Limited, Binance’s EUR banking partner, will stop providing services to Binance users starting from September 25th of this year.
This development comes only three months after Paysafe decided to stop offering its embedded wallet solution to Binance customers in the UK, citing the complex regulations in the country as the reason. As a result, Binance suspended GBP deposits and withdrawals for all users on May 22nd. At that time, the UK had just unveiled its plans to regulate cryptocurrency trading and lending with the aim of implementing stricter rules.
Paysafe had previously promised to continue working with Binance in other parts of Europe and Latin America after discontinuing its services for UK customers. Similar to before, Paysafe’s decision to discontinue services for Binance customers starting in September coincides with the recently adopted Markets in Crypto-Assets Act (MiCA) by the European Parliament.
EUR SEPA bank deposits to be interrupted
In the notification to users, Binance stated:
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“We are informing you that we will be changing the provider for EUR deposits and withdrawals. Our current EUR fiat payment partner, Paysafe Payment Solutions Limited (Paysafe), will stop offering SEPA deposit services to Binance users starting from September 25th, 2023. After this date, you will need to use new banking details to make EUR deposits into your Binance Fiat wallet and may also be required to accept new terms and conditions.”
While Binance assures users that they will find a new payment partner for EUR settlements, Binance.US, their US subsidiary, has also been experiencing issues with its banking partners, who have warned that they will stop providing USD banking services. Although Binance.US reached an agreement with its banking partners and announced the resumption of USD withdrawals, the exchange acknowledges that this solution may not be long-lasting.
These issues with banking partners arise at a time when Binance and its subsidiaries in various countries are facing regulatory scrutiny. On June 26th, Binance Austria GmbH decided to withdraw its license application in Austria, just days after a similar move in the UK. Binance is also under investigation by Brazilian authorities for pyramid schemes in the country, while the US Securities and Exchange Commission (SEC) has filed a lawsuit against Binance, its US subsidiary, and its CEO Changpeng Zhao for violating securities laws in the US.