Payment Processor Woes Lead Binance to Limit European Transactions

Tuesday, 22/08/2023 | 08:30 GMT by Damian Chmiel
  • One user of the exchange said he could not withdraw his euros.
  • Binance first reports a 'temporary suspension', then later claims it was an error.
CZ
Changpeng Zhao

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 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:

Source: Twitter
Source: Twitter

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.

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.

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 , 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.

CCData
CCData

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.

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 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:

Source: Twitter
Source: Twitter

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.

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.

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 , 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.

CCData
CCData

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.

About the Author: Damian Chmiel
Damian Chmiel
  • 2044 Articles
  • 56 Followers
About the Author: Damian Chmiel
Damian's adventure with financial markets began at the Cracow University of Economics, where he obtained his MA in finance and accounting. Starting from the retail trader perspective, he collaborated with brokerage houses and financial portals in Poland as an independent editor and content manager. His adventure with Finance Magnates began in 2016, where he is working as a business intelligence analyst.
  • 2044 Articles
  • 56 Followers

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