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Binance Faces Setback as Banking Partner Paysafe Withdraws Support

World's Largest Crypto Exchange Must Adapt to Changing Regulatory Landscape

Sun, 02 Jul 2023, 11:50 am UTC

In the ever-evolving world of cryptocurrencies, major players are often met with unexpected bumps in the road. One such player, Binance, the titan of cryptocurrency exchanges, recently experienced a jolt as its banking partner, Paysafe, announced the cessation of support.

From September 25, 2023, the Ireland-based financial firm, Paysafe, will withdraw its services for euro transactions with Binance. The move compels Binance's users to revise their banking details for deposits and potentially accept new terms and conditions for continuing to use SEPA (Single Euro Payments Area) services. SEPA, a unified cross-border payment network across the European Union, caters specifically to euro transactions.

This news arises amidst Binance facing growing concerns and scrutiny from financial regulatory bodies across Europe and the United States. Binance currently holds the position of the world's largest crypto exchange by trading volume, an accomplishment that, unsurprisingly, garners a fair share of attention and scrutiny.

Earlier this year, it found itself in the crosshairs of the U.S. Securities and Exchange Commission (SEC), resulting in a lawsuit. The SEC accused Binance, its U.S. entity, and its CEO, Changpeng "CZ" Zhao, of multiple federal securities law violations, which included allegations of offering unregistered securities and mixing customer funds.

The winds of change have been whistling around Binance for a while. The exchange declared its withdrawal from the U.K. and the Netherlands after the SEC lawsuit. Moreover, Binance was instructed by the Belgian market watchdog to stop offering its crypto services within Belgium's jurisdiction.

Rewinding to February 2022, the U.K.'s financial regulatory body expressed anxiety when Binance gained access to the country's primary payments network following its partnership with Paysafe. The details of this anxiety were reported by the Financial Times, reflecting growing concerns over the exchange's operations.

In the face of mounting regulatory pressure and impending support withdrawal from Paysafe, Binance's resilience will undoubtedly be tested.

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