Binance’s EUR banking partner announces plan to halts support

• Paysafe is Binance’s current EUR banking partner.
• Paysafe will not provide services to Binance users from 25th September 2023.
• The announcement comes, weeks after Binance.US announced its banking partners had warned to discontinue their services.

According to a notification to Binance users, the exchange’s EUR banking partner, Paysafe Payment Solutions Limited, will stop offering services to Binance users starting September 25^th this year.

The development comes barely three months after Paysafe decided to stop offering Binance customers its embedded wallet solution in the UK in a move it blamed on the complex regulation in the country as reported here. As a result Binance suspended GBP deposits and withdrawals for all users on May 22. At the time, the UK had just unveiled its plan to regulate crypto trading and lending aiming to introduce stricter rules.

Paysafe had promised to continue working with Binance in other parts of Europe and Latin America after discontinuing its services for UK customers. And just as was the case then, Paysafe’s plans to discontinue services for Binance customers starting in September comes right on the heels of the newly adopted Markets in Crypto-Assets Act, MiCA, by the European parliament.

EUR SEPA bank deposits to be interrupted

In its notification to users, Binance stated:

“We are contacting you to let you know that we will be changing the provider for EUR deposits and withdrawals. Our current EUR fiat payment partner, Paysafe Payment Solutions Limited (Paysafe), will stop offering SEPA deposit services to Binance users from 25^th September 2023. Following this date, you will be required to use new banking details to make UER deposits into your Binance Fiat wallet and may be required to accept new terms and conditions.”

While Binance promises to find a new payment partner for EUR settlements, Binance.US, its US subsidiary has also been having issues with its banking partners who had issued a warning that they would stop offering USD banking services. Although Binance.US reached an agreement with the banking partners and announced the resumption of USD withdrawals, the exchange was quick to note that the solution may not last long.

The issues with banking partners come at a time when Binance and its subsidiaries in various parts of the country continue facing regulatory scrutiny. On June 26, Binance Austria GmbH chose to withdraw its license application in Austria just days after a similar move in the UK. Binance.

Brazilian authorities are also investigating Binance Brazil for pyramid schemes in the country while the US Securities and Exchanges Commission (SEC) has sued Binance, its US subsidiary, and its CEOChangpeng Zhao for violating the securities laws in the country.