In the wake of its banking partner Paysafe's withdrawal, Binance, the cryptocurrency exchange, has advised its users to convert their Euro balances into Tether's USDT. The decision comes after Paysafe unilaterally decided to stop processing Euro deposits for Binance users on Thursday, September 28, 2023. This action led to the suspension of deposits and Euro spot trading pairs trading activities by 4:00 a.m. UTC on the same day.
Binance has assured its users that it is working to integrate new fiat channels onto the platform soon. Users who do not wish to convert their Euro balances into USDT can directly withdraw their funds into their bank accounts.
The exchange's relationship with Paysafe has been strained over recent months. Prior to the issues with the Euro, Paysafe had stopped processing British Pound transactions for Binance in May, citing a challenging U.K. regulatory environment. In June, Paysafe informed CryptoSlate of its collaboration with Binance to ensure a structured conclusion of their integrated wallet services for Binance throughout the European Economic Area (EEA) region. However, Binance disputes Paysafe's claim that its service withdrawal was sudden.
Binance's banking struggles are not limited to Europe. In February, the exchange temporarily suspended US Dollar-denominated fiat transfers after its banking partner, Signature Bank (OTC:SBNY), stopped processing crypto transactions worth less than $100,000. Its U.S. subsidiary, Binance US, transitioned to a crypto-only exchange after its banking partners abruptly halted their services.
On September 27, Binance sold its Russian business to a newly formed crypto exchange, CommEX, citing incompatibility with its compliance strategy in the region.
While Binance is actively working to identify a new fiat partner for Euro services and has temporarily suspended Euro spot trading, it remains uncertain when alternative Euro support will be reinstated. The exchange has allowed users to convert their Euro balances to USDT by October 31, to accommodate them during this transitional phase. Despite the interruption in buying, selling, trading, and investing services in Euro, users can still withdraw their Euro balances to their bank accounts.
This recent development adds to Binance's regulatory challenges in Europe. Over the summer, the exchange announced its exit from the Netherlands due to a lack of regulatory approval. It also sought to deregister its local entity in Cyprus and faced an investigation in France for alleged money laundering. However, this week, Binance resumed its exchange services in Belgium after being instructed to cease operations by the country’s regulator three months earlier.
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