Binance, the world’s largest cryptocurrency exchange, is in search of a new European banking partner after Paysafe Payment Solutions announced its decision to withdraw support for the crypto exchange. Paysafe, a global payment service provider, stated that following a strategic review, it will cease offering its embedded wallet solution to Binance across the European Economic Area (EEA) region. Both companies are working on a mutual process to terminate the service in an orderly and fair manner over the next few months.
The termination by Paysafe affects EUR deposits and withdrawals via Bank Transfer (SEPA) to Binance users and is set to take effect on September 25, 2023. Binance confirmed this development, informing users that they will need to update their banking details for deposits and may have to accept new terms and conditions to continue using SEPA services after the mentioned date. However, other fiat currencies’ deposit and withdrawal methods and buying and selling crypto on Binance.com remain unaffected, including bank transfers with supported fiat currencies and credit or debit card transactions.
SEPA, the Single Euro Payments Area, is a cross-border payment network for euro transactions within the European Union, enabling seamless and efficient payment transfers between European countries. Paysafe, which is listed on the NYSE under the ticker PSFE, has been Binance’s banking partner in the UK through the Faster Payments network, but it is also withdrawing this service in Britain.
Binance has been facing increased scrutiny recently, leading to several operational changes. The exchange withdrew from Cyprus and terminated operations in the Netherlands after failing to obtain a virtual asset service provider (VASP) license. Binance Markets Limited, the UK subsidiary, has also canceled unused permissions with the Financial Conduct Authority (FCA), rendering it unable to provide regulated activities and products.
Additionally, Binance is facing legal challenges, with a lawsuit filed against the exchange by the U.S. Securities and Exchange Commission (SEC) for alleged violations of U.S. securities laws. French authorities are also investigating Binance for offenses, including “aggravated money laundering.”
Paysafe’s decision to withdraw support for Binance in the EEA comes amid regulatory scrutiny aimed at combating money laundering. Binance recently reached an agreement with the SEC to ensure that U.S. customer assets remain within the country until the resolution of a sweeping lawsuit filed by the regulatory agency.