Cryptocurrency exchange Binance has encountered a setback as its banking partner, Paysafe, has decided to stop processing EUR deposits. This unexpected move has caused disruptions in various Binance services. In response, Binance advises its users to convert their fiat Euro balances into Tether’s USDT before the end of October.
Disruptions and Suspension of Activities
Binance revealed in a recent update that Paysafe has unilaterally decided to halt the processing of EUR deposits for Binance users. This action has resulted in multiple disruptions, including the suspension of deposit and EUR spot trading pairs activities from 4:00 a.m. UTC on September 28th. Binance alerts its Paysafe users to take appropriate actions ahead of time. Those who do not wish to convert their EUR balances into USDT have the option to withdraw their funds directly into their bank accounts. Binance is actively working towards integrating new fiat channels onto their platform in the near future.
Contrary to Paysafe’s description of service withdrawal as “sudden,” Binance contests the accuracy of this claim. Previously, Paysafe had announced its collaboration with Binance to ensure an organized conclusion of their integrated wallet services across the European Economic Area. Binance had confirmed this development through its spokesperson. It is worth noting that prior to the issues with the Euro, Paysafe had already stopped processing British Pound transactions for Binance earlier in the year, citing regulatory challenges in the U.K.
Binance has been facing increasing difficulties in securing new banking partners around the world as regulatory scrutiny over its operations intensifies. In February, the exchange faced a temporary suspension of US Dollar-denominated fiat transfers when its banking partner, Signature Bank, ceased processing crypto transactions below $100,000. Furthermore, Binance’s subsidiary in the United States, Binance US, made the transition to become a crypto-only exchange after its banking partners abruptly halted their services to the platform. As a result of these challenges, Binance sold its Russian business to a newly formed crypto exchange called CommEX. The decision was made due to the incompatibility between operating in the region and Binance’s compliance strategy.
With the loss of support from Paysafe and the resulting disruptions in Binance services, it is crucial for Binance users to convert their fiat Euro balances into Tether’s USDT. Tether’s USDT is a stablecoin that is pegged to the value of the US dollar, offering stability and ease of use within the cryptocurrency market. By converting their fiat Euro balances into USDT, Binance users can continue to trade and utilize the platform seamlessly, minimizing any potential impact caused by the banking partner’s withdrawal.
Binance’s current challenges with its banking partner, Paysafe, have resulted in disruptions to its services. By advising users to convert their fiat Euro balances into Tether’s USDT, Binance aims to mitigate the impact caused by the loss of support. The exchange is also actively working on integrating new fiat channels to provide more options for its users. This setback highlights the continued struggles faced by Binance in establishing and maintaining banking partnerships in an increasingly regulated cryptocurrency landscape.