Paysafe will discontinue support for bank transfers of euros to and from Binance, the payments provider announced. The news comes when the world’s largest cryptocurrency exchange finds itself under pressure from regulators and banking partners in Europe and elsewhere.
Paysafe to Stop Euro Deposits and Withdrawals for Binance
Crypto exchange Binance, the global leader in terms of daily trading volume, will lose access to payments in the common European currency, another setback for its operations on the Old Continent that comes amid regulatory crackdown in various jurisdictions.
“Following a strategic review, we have taken the decision to cease offering our embedded wallet solution to Binance across the region,” its U.K.-based payment processor, Paysafe, said in a statement, quoted by Bloomberg. The company added:
Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months.
Paysafe will no longer support bank transfers of euros to and from Binance via the Single Euro Payments Area (SEPA) network, starting from Sept. 25, a spokesperson for the exchange confirmed. Binance “will be changing the provider,” the representative pointed out and emphasized:
All methods of depositing and withdrawing other fiat currencies as well as buying and selling crypto on Binance.com remain unaffected.
The development coincides with increased pressure on Binance in some EU member states. The exchange was recently ordered to cease all crypto services in Belgium while French prosecutors are investigating it for money laundering violations.
Earlier this month, Binance pulled out of the Dutch market, after failing to obtain registration as a crypto service provider in the Netherlands, applied for deregistration in Cyprus as such, and cancelled its U.K. authorization to focus on fewer regulated entities in Europe.
Meanwhile, the platform’s share of euro-denominated crypto trading has dropped to 13% this year, according to data from research firm Kaiko. The market share of Binance’s subsidiary in the in the U.S., where the exchange is engaged in a legal battle with the securities regulator, fell to 1.5%.
In March, Paysafe announced it would stop supporting withdrawals and deposits for Binance in the United Kingdom and did so in May, which resulted in a subsequent drop of crypto trading volume denominated in the British pound across multiple platforms. At the time, the London-headquartered company said it would continue to support transfers for Binance in Europe and Latin America.
Do you think Binance will be able to secure another payment processor for euro deposits and withdrawals before Paysafe halts transfers? Tell us in the comments section below.