Jun 29, 2023 05:05
Binance has announced that its euro banking
partner, Paysafe Solutions, will stop supporting payments for the
cryptocurrency exchange from September 25. The development follows
concerns by the UK's financial regulator over Binance's use of the country's
payment network.
"Following this
date, you will be required to use new banking details to make EUR deposits into
your Binance fiat wallet and may be required to accept new terms and
conditions," the exchange notified users.
Payments via SEPA
Network Affected
However, Binance clarified that only the euro deposits and
withdrawals functions provided by Paysafe, such as through Bank Transfer
(SEPA), were affected, and not any other fiat deposits or withdrawals services. The abbreviation for Single Euro Payments Area, SEPA is a cross-border payments
network in the European Union.
In January, Binance and
Paysafe entered
into a partnership that
enabled the cryptocurrency exchange to access Faster Payments Service,
a payments network that connects financial services providers in the UK. Besides that, the partnership allowed Binance to access the SEPA payment network.
However, according to a report by the Financial Times, the Financial Conduct Authority (FCA) expressed concerns about the deal. In an earlier comment, the FCA said that Paysafe was aware of the concerns and the company was subject to close supervision.
Securing payment
services through fiat currencies has always been a concern for unregulated
cryptocurrency companies, especially Binance. Scrutiny by the regulators such as
the FCA often forces banks and financial service providers to withdraw their support. The situation has worsened with the mounting
regulatory pressure Binance faces globally.
Binance Faces Regulatory
Troubles
For instance, Binance, its affiliated entities, and its
CEO and Co-Founder, Changpeng Zhao, are facing
several charges brought
by the US Securities and Exchange Commission (SEC). Some of the allegations include operating an illegal trading platform,
offering unregistered securities, and comingling customers' funds, Finance Magnates recently reported.
Since
the SEC sued Binance, the FCA has canceled several permissions issued to the
exchange's affiliate in the UK. Moreover, the exchange has announced that it is
retreating from the Netherlands and Cyprus. Similarly, Belgium's regulator has
ordered Binance to cease operations in the country, while in France, the company is
facing money laundering allegations.
This article was written by Jared Kirui at www.financemagnates.com.
World Crypto Global
