Binance’s EUR Banking Partner to Cease Support for Crypto Exchange in September

Binance, the world’s largest cryptocurrency exchange, is set to lose its current European banking partner, Paysafe Payment Solutions Limited, as the latter announced that it will stop supporting the exchange after September 25. In an email statement to CoinDesk, a Binance spokesperson confirmed the news and stated that the exchange will be changing its provider for EUR deposits and withdrawals via Bank Transfer (SEPA).

According to the spokesperson, Binance users will need to update their banking details for depositing to their accounts and may also be required to accept new terms and conditions to continue utilizing SEPA services after the specified date. SEPA, or Single Euro Payments Area, is the integrated cross-border payment network for euro transactions in the European Union.

This development comes amidst the backdrop of regulatory challenges faced by Binance across Europe and the United States. Earlier this month, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against Binance, its U.S. counterpart Binance.US, and CEO Changpeng “CZ” Zhao, accusing them of violating multiple federal securities laws. The allegations include offering unregistered securities and commingling customer funds.

As a result of these regulatory concerns, Binance has decided to retreat from several European countries. The exchange announced its withdrawal from the United Kingdom, the Netherlands, and Cyprus, while the market watchdog in Belgium ordered Binance to halt its crypto services in the country.

The issue of Binance gaining access to the primary payments network in the United Kingdom had already raised concerns among financial regulators. In February 2022, the UK’s financial regulator expressed worry over Binance’s deal with Paysafe, which paved the way for the exchange to access the country’s main payment network.

With its current European banking partner discontinuing support and facing regulatory challenges in multiple jurisdictions, Binance will have to navigate these hurdles to ensure a smooth transition for its users and maintain its position as the leading cryptocurrency exchange in the world.