- Paysafe ends its association with top crypto platform Binance.
- Binance users holding euros advised to convert to Tether by October 31.
- Trading with EUR spot pairs halted, with orders canceled shortly after.
When it comes to handling digital currencies in Europe, the landscape is rapidly evolving. In a surprising twist, Binance, a prominent cryptocurrency platform, faces a significant challenge after Paysafe, its principal European banking ally, decided to part ways. This has prompted Binance to suggest its users in Europe, especially those holding euros, move towards Tether (USDT) by the end of October.
On September 28, a mere day before the big revelation, Binance had alerted its Europe-based customers relying on Paysafe to consider relocating their euro balances on Binance over to USDT. This alert was a direct outcome of Paysafe’s sudden and rather unexpected choice to cease accepting EUR deposits from Binance users.
But it’s not all bleak. Binance has been quick to clarify that even though euro deposits might face challenges, there will be no hitches for users intending to transfer EUR to their individual bank accounts. For those who trade, the stop on operations with EUR spot trading pairs kicked in bright and early on September 28. Orders pending in line faced abrupt cancellation just an hour later.
Additionally, those using Binance’s Convert feature for token swaps will need to navigate around some limitations on euro-centric transactions. A precursor to this whole episode was Paysafe’s decision to suspend its euro deposits a few days prior, on September 25. It’s worth noting that Paysafe played a crucial role in handling fiat money transactions for Europe-based Binance aficionados, notably with the inclusion of bank transactions using the European Union’s SEPA system.
Interestingly, this isn’t Paysafe’s first dance with policy changes around Binance. A rewind to May reveals that Paysafe chose to halt support for dealings in British pounds. This decision was heavily influenced by the skepticism exhibited by financial watchdogs in the UK about their joint operations.
Navigating the European market hasn’t been a breeze for Binance. Earlier in the year, Binance decided to pull the plug on its activities in the Netherlands and Russia. Not too long after this, the Belgian regulatory bodies stepped in, urging the platform to halt its services. However, in a ray of hope, Binance reopened its doors for Belgian residents as of September 26.
Binance Adjusts After European Hurdles
Binance is navigating a complex landscape in Europe following the recent dissolution of its association with Paysafe, its primary financial ally in the continent. This move led Binance to guide European members holding euros to contemplate transitioning to the USDT digital currency before the end of October.
In a related development, adjustments were made to the company’s fiat liquidity protocols, and specific trading pairs were delisted. Earlier challenges saw the firm suspending its activities in the Netherlands and contending with directives from Belgium to stop its operations. Despite these setbacks, there’s a silver lining: Binance resumed account setups for those in Belgium and extended its reach by laying foundations in the UAE.