Binance Still In Crisis In Europe As Another Banking Partner Leaves

Key Points:

• Binance is experiencing regulatory scrutiny and facing challenges with its banking partners.
• Paysafe Payment Solutions, the exchange’s European banking partner, will stop selling its integrated wallet solution to the platform in the European Economic Area from September 25.
• The exchange is also facing regulatory issues in Australia and Canada.

As the crypto exchange Binance continues to undergo regulatory scrutiny throughout the world, banking partners have begun to distance themselves from the exchange.

According to Reuters, Paysafe Payment Solutions, the exchange’s European banking partner, said on Thursday that it would discontinue selling its integrated wallet solution to the US cryptocurrency exchange throughout the European Economic Area (EEA) on September 25.

“Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months,” Paysafe said in an email.

As a consequence, Binance will need to change its Euro deposit and withdrawal provider through the Single Euro Payments Area (SEPA). Yet, it remains unclear who the exchnage will choose following Paysafe. It has previously used payment intermediaries to get access to SEPA.

The claim comes as the exchange is being scrutinized by officials looking to crack down on money laundering.

After the Securities and Exchange Commission’s regulatory action earlier this month, the crypto exchange has been losing market share. Yet, Binance retains a leading position over other worldwide cryptocurrency exchanges.

Binance is under regulatory scrutiny not just in the United States but throughout the globe. Its derivatives license was revoked by the Australian Securities and Investments Commission in April. After that, local banks and payment partners ceased to engage with Binance Australia. But, last month, Binance stated that it would depart Canada owing to the country’s new cryptocurrency restrictions.

According to Protos, Nomo Bank, a digital bank created in 2021, has also restricted consumer payments with the exchange.

Binance and its U.S. affiliate agreed with the SEC earlier this month to keep U.S. customer funds in the nation until the regulatory agency’s complaint is resolved. The deal assures that assets belonging to US clients will remain in the nation until the SEC’s action is resolved.

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