Crypto exchange Binance is facing a significant interruption in its operations after Paysafe, its European banking partner, decided to stop processing Euro (EUR) deposits. The decision, which was reportedly made without any prior notice, has led Binance to urge its users to convert their EUR balances into Tether (USDT) before October 31.
Paysafe, a UK-based multinational payment firm that offers a variety of banking services, including payment processing, digital wallets, and peer-to-peer transactions, had previously facilitated fiat deposits and withdrawals for European users.
Tightening Regulations Continue to Strangle Binance
However, the firm suspended EUR deposits to the exchange platform on September 25. In response to this sudden move by Paysafe, Binance has had to disable several EUR-related services on its trading platform.
This pertains to the purchasing and selling of cryptocurrencies using the Euro (EUR). From September 28 onwards, the ability for users to engage in spot trading pairs with EUR will be discontinued, and any existing spot orders involving EUR will be automatically nullified.
Binance has also announced changes to its products Convert and Auto Invest regarding EUR services. Furthermore, Spot Trading Bots services for EUR/USDT and EUR/BUSD will be terminated for Paysafe users.
Despite these challenges, Binance reassured its users that they can still withdraw their EUR balances from their wallets to their bank accounts. The exchange also stated that it is working on integrating new fiat channels onto Binance soon.
This development adds to the growing list of regulatory and debanking issues faced by Binance in the West. Earlier this year, Paysafe also pulled support for GBP transactions following concerns raised by UK financial regulators over the partnership. As Binance navigates through these challenges, it continues to urge its users to take appropriate actions in advance.
In June, Binance made public its decision to cease operations in the Netherlands. This was closely followed by an order from Belgian authorities demanding a suspension of the exchange’s services within their jurisdiction. However, a recent update on September 26 revealed that Binance has resumed accepting new registrations from residents of Belgium.