Cryptocurrency exchange Binance is suffering a setback in Europe as its banking partner Paysafe Payment Solutions Ltd is withdrawing support. Paysafe provides euro deposits and withdrawals to Binance; their services in Europe will cease on September 25.
Paysafe’s decision follows intensifying regulatory scrutiny of cryptocurrency exchange Binance by European regulators. The UK Financial Conduct Authority (FCA) has already taken steps against their UK affiliate, while the Securities and Exchange Commission sued Binance on 13 counts related to unregistered offerings and fraud.
Binance has recently been forced into searching for a third-party payment provider that will allow its European users to deposit and withdraw fiat currencies with ease, and to comply with Markets in Crypto-Assets Act (MiCA). As part of these efforts, Binance has already discontinued operations in Cyprus, the Netherlands, Belgium’s market watchdog ordered all its services be discontinued completely, while its director for Brazil was summoned before parliament as well due to ongoing investigations of potential pyramid schemes there.
Binance had collaborated with Paysafe last year so its UK users could deposit sterling via Faster Payments, an agency responsible for payments and bank account transfers in Britain. On May 22nd, GBP deposits and withdrawals for all users in Britain were temporarily suspended, due to complex regulations requiring this action. Following this withdrawal in mid-June in Netherlands customers only started being able to access their funds starting on July 17th. Binance’s Australian branch was recently cut off from Australia’s banking system without prior notice or consultation, leaving one to wonder how Binance will navigate this shifting environment of cryptocurrency regulations worldwide. Binance has been working to comply with MiCA in the US, and is said to be in preparation of doing so globally as well. Meanwhile, they’ve focused on expanding their business in Asia with newly opened offices in Japan and Singapore – maybe Binance could find new payment partners? Let us know your thoughts in the comments below!