Binance To Lose Access To Euro Payments As Paysafe Withdraws Support

Binance To Lose Access To Euro Payments As Paysafe Withdraws Support

Payments provider Paysafe announced that it would no longer provide support for making transfers in euro to and from crypto exchange Binance.

This news comes as the largest crypto exchange in the world has found itself under pressure from banking partners and regulatory authorities in Europe and other regions.

Paysafe announcement

The largest crypto exchange in the world in terms of daily volume, Binance, continues to experience setbacks in its operations in Europe because of the regulatory pressure it is facing in numerous jurisdictions.

In the latest blow, the crypto exchange would no longer be able to support payments in terms of Euro because of the announcement from Paysafe.

The payments processor, which is based in the United Kingdom, announced that after conducting a strategic review, they had decided to stop offering their wallet solution to customers of Binance across the Old Continent.

The company further stated that it was working with Binance to terminate their services in a fair and orderly manner in the next few months.

A spokesperson for Binance confirmed that beginning from September 25th, 2023, ban transfers in euro would no longer be supported by Paysafe from and to Binance through the SEPA (Single Euro Payments Area) network.

Binance’s response

The representative of Binance further added that the exchange would now change providers. They also added that other methods of making deposits and withdrawals in other fiat currencies were unaffected.

Customers could also be able to continue purchasing and selling crypto tokens on the exchange. This development comes as there is an increase in pressure on Binance from other member states in the EU.

It is currently being investigated in France for money laundering violations, while Belgium authorities have already ordered the exchange to cease all crypto services in the country.

The troubles

Binance had been unable to secure a register in the Netherlands as a crypto service provider, which prompted the exchange to withdraw from the Dutch market.

Likewise, the exchange also canceled its authorization in the United Kingdom and decided to deregister in Cyprus.

According to the exchange, it wants to keep the regulated entities in the continent to a minimum for ensuring better focus.

Meanwhile, according to data from a research firm, the exchange has seen a decline in its share of crypto trading denominated in euro to 13%.

Binance also saw its market share decline to 1.5% in the United States, where it is currently embroiled in a legal battle with the Securities and Exchange Commission (SEC).

Paysafe had announced back in March of this year that it would halt support for deposits and withdrawals in the UK on the Binance exchange, which had gone into effect in May.

This had seen a substantial decline in crypto trading volume on the exchange denominated in the British pound in May.

Headquartered in London, the company had said at the time that it would continue supporting transfers in Latin America and Europe on the crypto exchange.