EU Users of Binance: Paysafe Blocks Withdrawals ahead of Service Termination

Wednesday, 20/09/2023 | 03:37 GMT by Arnab Shome
  • Only 0.085 percent of Binance's EU users were affected by the "early closure review."
  • Paysafe will terminate its support for Binance on 25 September.
Binance

Fiat withdrawals for some Binance users in the European Union have been blocked ahead of the end of support by the crypto exchange's local payment provider, Paysafe, Coindesk reported.

Paysafe Ends Support to Some Binance Users in the EU

Paysafe, a payments processing company, has already ended its partnership with Binance and will terminate its support on 25 September. However, the payment processor has already blocked fiat payouts to several Binance users.

"As a high-frequency Paysafe service user, Paysafe closed your account early to speed up this process. Any remaining EUR/GBP in your account can be withdrawn once the review is completed," Paysafe notified a Binance user in the EU.

Binance also confirmed to the crypto-focused publication that Paysafe imposed an "early closure review" on a "very small portion." It only affected 0.085 percent of Binance users with Paysafe accounts. However, the accurate reasoning behind it is unknown.

"We're actively working to speed up the return of funds from Paysafe to all affected users. We will notify users immediately through the Binance app, along with a follow-up email, once Paysafe informs us that reviews are complete," Binance added.

The End of a Partnership

The crypto exchange tapped the services of Paysafe last year in May to process withdrawals and deposits through the euro and the British pound. However, Paysafe first pulled its services from facilitating GBP payments last May and decided to terminate its deal with the crypto exchange in the following month after a "strategic review."

Although Paysafe did not clarify the reasons behind its decision, it was taken when Binance and its CEO, Changpeng Zhao "CZ", were slapped with lawsuits by two top US regulators. The exchange is even facing regulatory scrutiny in other jurisdictions, including Australia and the European Union.

In a response to Coindesk, Paysafe said it "cannot speculate in the media on why this particular customer is unable to make transactions and it is Binance who holds the relationship with the customer not Paysafe," adding services to Binance customers "are fully operational with our contractual and regulatory obligations."

The US arm of Binance also faced payment-related troubles after its two banking partners collapsed. Although Binance.US became a crypto-only exchange following the SEC lawsuit against it, the exchange partnered with MoonPay last month for on-ramp services.

Meanwhile, Binance and its troubled US arm are witnessing an exodus of departures from the management. The companies additionally laid off dozens of employees.

Fiat withdrawals for some Binance users in the European Union have been blocked ahead of the end of support by the crypto exchange's local payment provider, Paysafe, Coindesk reported.

Paysafe Ends Support to Some Binance Users in the EU

Paysafe, a payments processing company, has already ended its partnership with Binance and will terminate its support on 25 September. However, the payment processor has already blocked fiat payouts to several Binance users.

"As a high-frequency Paysafe service user, Paysafe closed your account early to speed up this process. Any remaining EUR/GBP in your account can be withdrawn once the review is completed," Paysafe notified a Binance user in the EU.

Binance also confirmed to the crypto-focused publication that Paysafe imposed an "early closure review" on a "very small portion." It only affected 0.085 percent of Binance users with Paysafe accounts. However, the accurate reasoning behind it is unknown.

"We're actively working to speed up the return of funds from Paysafe to all affected users. We will notify users immediately through the Binance app, along with a follow-up email, once Paysafe informs us that reviews are complete," Binance added.

The End of a Partnership

The crypto exchange tapped the services of Paysafe last year in May to process withdrawals and deposits through the euro and the British pound. However, Paysafe first pulled its services from facilitating GBP payments last May and decided to terminate its deal with the crypto exchange in the following month after a "strategic review."

Although Paysafe did not clarify the reasons behind its decision, it was taken when Binance and its CEO, Changpeng Zhao "CZ", were slapped with lawsuits by two top US regulators. The exchange is even facing regulatory scrutiny in other jurisdictions, including Australia and the European Union.

In a response to Coindesk, Paysafe said it "cannot speculate in the media on why this particular customer is unable to make transactions and it is Binance who holds the relationship with the customer not Paysafe," adding services to Binance customers "are fully operational with our contractual and regulatory obligations."

The US arm of Binance also faced payment-related troubles after its two banking partners collapsed. Although Binance.US became a crypto-only exchange following the SEC lawsuit against it, the exchange partnered with MoonPay last month for on-ramp services.

Meanwhile, Binance and its troubled US arm are witnessing an exodus of departures from the management. The companies additionally laid off dozens of employees.

About the Author: Arnab Shome
Arnab Shome
  • 6627 Articles
  • 99 Followers
About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6627 Articles
  • 99 Followers

More from the Author

CryptoCurrency

!"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|} !"#$%&'()*+,-./0123456789:;<=>?@ABCDEFGHIJKLMNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}