- Paysafe, Binance Euro Banking Partner, to halt support.
- Binance faces challenging times after the initiation of a lawsuit by the SEC.
- Binance banking partners abandon the exchange after SEC’s lawsuit.
Another Payment Partner Dissociate from Binance
Binance Euro Banking Partner, Paysafe Payment Solutions, will halt support for the crypto exchange by the 25th of September.
Paysafe Payment Solutions stated it would cease its embedded wallet solution to Binance. Binance confirmed the news and plans to change its European payment withdrawal system through the Single European Payments Area(SEPA). SEPA is Europe Union’s integrated cross-border payment network for euro transactions.
Binance processes its euro transactions to SEPA using payment intermediaries like Paysafe. Without Paysafe to serve as an intermediary to SEPA, a new wallet solution provider is needed. At the moment, Binance is yet to provide details on its new Euro banking partner.
Binance faces challenges after a lawsuit by SEC
Binance faces hard times after the commencement of a lawsuit against the crypto exchange and its CEO by the SEC.
The Securities and Exchange Commission initiated a lawsuit against Binance recently. SEC alleged that the famous crypto exchange is trading unregistered securities, manipulating trades, and controlling and misleading U.S. customers, amongst other charges.
SEC’s findings showed that Binance.com and Binance U.S. operated as unlicensed brokers and dealers. The transaction fee from these activities generated $11.6 billion.
The alleged actions by the crypto exchange amounted to a violation of trading and securities laws.
ChangPeng Zhou, Binance Founder, and Chief Executive Officer, has vehemently denied the allegations made by SEC.
A week after SEC sued Binance and its founder, Changpeng Zhou, the crypto faced its largest withdrawal rate, and some of the exchange’s banking partners began to halt their support.
Binance U.S. suspended USD withdrawals because its banking partners planned to pause fiat withdrawal channels. The suspension of USD was the start of the multiple challenges Binance would face in June.
Shortly after the suspension of USD withdrawals, Binance U.S. reached a temporary agreement to facilitate withdrawals.
For five days, Binance U.S. customers could withdraw and convert their USD to other stablecoins. While the temporary solution eased the initial fear of the exchange’s customers, the crypto industry was skeptical about what would lay ahead for the crypto exchange.
While the legal battle was ongoing, Binance exited the Netherlands. In a public announcement on its page, Binance stated that the exchange has been in the process of registering as a virtual asset service provider in the Netherlands, but it was unsuccessful.
“Although we explored many alternative avenues to Dutch service residents in compliance with Dutch regulations, unfortunately, this has not resulted in a VASP registration in the Netherlands at this time,” the report stated.
After its exit from the Netherlands, Binance left the Canadian market due to restrictive regulations.
The crypto exchange also applied to Cyprus Securities and Exchange Commission to deregister. Neither Binance nor CySEC explained the reason for the deregistration of the exchange’s local unit in Cyprus. However, a Binance spokesperson told Coindesk the crypto exchange left Cyprus to focus on other regulated entities in Europe.
Paysafe Payment Solutions is Binance’s latest partner to segregate itself from the crypto exchange.
