Just when it seems that Binance, embroiled in regulatory issues, takes a small step forward, it faces a setback from another jurisdiction, complicating its decentralized operations worldwide. According to recent reports, the exchange allegedly grapples with payment issues in Europe, leading to the suspension of euro deposits and withdrawals. However, Binance's spokesperson insists that the service operates as usual.

Binance Allegedly Suspends Euro Deposits and Withdrawals via SEPA

Binance Customer Support's official Twitter account announced that the exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term had temporarily suspended deposits and withdrawals using Single Euro Payments Area (SEPA) transfers. SEPA is a European payment standard that facilitates quick and secure card-based transfers within the European Union (EU).

In a tweet posted on 20 August, the exchange stated they were uncertain when SEPA transfers would be reinstated. They mentioned that their current payment provider could no longer support them. This news reignited discussions about Binance's regulatory issues in Europe, but the tweet was later removed from their official profile.

A screenshot showcasing the tweet's content is available below:

The tweet supposedly responded to a Binance customer who claimed to have purchased a significant amount of euros and could not withdraw the funds because the "Paysafe account was closed early." In the latest update on 22 August, he claimed that he still could not access his funds after extensive discussions with support.

The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then - so stay tuned.
- VS

— Binance Customer Support (@BinanceHelpDesk) August 21, 2023

This news comes months after Binance informed its users that Paysafe Payment Solutions, the company responsible for euro payments, was halting its collaboration with the exchange. Paysafe will cease to handle payments in the euro after 25 September.

Binance Responds to Allegations

As mentioned earlier, Binance's tweet about temporarily suspending euro transfers was deleted. In a separate tweet, Binance Customer Support clarified that the message was sent in error and that SEPA deposits and withdrawals would continue uninterrupted until 25 September.

The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then - so stay tuned.
- VS

— Binance Customer Support (@BinanceHelpDesk) August 21, 2023

Furthermore, the exchange's press office explained that due to "routine compliance checks," some users' accounts might be closed earlier than others.

This is not the first time Binance has suspended withdrawals. Last year, the exchange temporarily halted Bitcoin (BTC) withdrawals from its platform due to 'stuck transactions'. However, the issue was resolved the same day.

Binance Faces Challenges on Multiple Fronts

Binance's regulatory troubles escalated in early June when the US SEC brought a total of 13 charges against Binance, its two affiliates Affiliates Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Affiliates serve as an essential component of a broker’s client acquisition tactics and marketing. One of the most important functions of affiliate marketers is the sending of leads to the broker, which are directly opening an account or visiting the broker’s website. There are several ways in which brokers are compensating affiliates based on the number and type of clients they refer to the company and whether or not or how much they end up depositing.Understanding CPA or Cost Per Acquisition T Read this Term, and Founder, Changping Zhao. These charges included operating illegal trading platforms, offering unregistered crypto asset securities, and mixing customers' funds.

This led to unfavorable regulatory decisions for the exchange in other jurisdictions, mainly in Europe. In June alone, Binance exited the Netherlands, Cyprus, and the UK, and faced scrutiny from French regulators over allegedly offering illegal cryptocurrency services.

Binance's regulatory challenges in the US and Europe have prompted it to consider shifting its focus to the Middle East. Alex Chehade, the General Manager of Binance Dubai, believes the United Arab Emirates (UAE) could become the primary destination for cryptocurrency businesses seeking clear and favorable regulations.

Binance has lost a significant market share in the US, which smaller exchanges have capitalized on. Data from CCData indicates that exchanges based in Seychelles, including KuCoin and Huobi Global, have benefited the most from Binance's waning popularity.