Customers of the cryptocurrency exchange Binance are reportedly experiencing withdrawal difficulties in Europe due to Single Euro Payments Area (SEPA) transfer issues. Binance’s customer support wrote on X (formerly Twitter) on August 20 that the exchange had purportedly suspended euro withdrawals and deposits via SEPA.
Binance’s position in Europe shakes up
The crypto exchange stated in a post on X that it does not have a specific timeline for restoring SEPA transfers and that its payment provider “can no longer support these transactions.”
The crypto exchange added that “we understand the inconvenience this has caused, and we’re actively working to resolve this as soon as possible.”
The statement was issued in response to an alleged European Binance user who claimed to have purchased a “large amount of EUR on Binance” a few days ago. Due to the suspension of their Paysafe account, the alleged client was unable to withdraw euros to their bank account or sell them on the crypto exchange. They further stated:
According to customer support there is nothing I can do about it except waiting for Binance to find a new payment provider. Letting users buy EUR, just to block them from accessing it right afterwards is what you would expect from scam exchanges, not Binance.
Binance Customer Service
The announcement comes just a few months after the crypto exchange alerted users that its current euro banking partner, Paysafe Payment Solutions, would no longer serve the crypto exchange. The crypto exchange added that:
Users will need to update the banking details used to deposit to their Binance accounts and may be required to accept new terms and conditions to continue using SEPA services after this date.
Binance Customer Service
Following the deletion of the post, the exchange informed news outlets that the customer support message on X was “sent in error,” and that the “SEPA deposit and withdrawal service will continue until September 25 as originally communicated.”
the crypto exchange’s recent withdrawal problems in Europe are not unusual for the exchange. The exchange suspended Bitcoin withdrawals in May, citing a significant backlog of pending withdrawals.
The pause comes just one day after the exchange experienced its first withdrawal outage as a result of a crowded Bitcoin mempool, with over 400,000 transactions becoming trapped on the blockchain.
Checkout.com terminates contract with Binance
The leading crypto exchange exited markets in the United Kingdom, Germany, the Netherlands, and Cyprus earlier this year.
Policymakers are focusing on setting clear and rigorous regulatory requirements as part of the EU’s new regulatory framework, with the goal of protecting consumers while fostering development in the digital asset area.
The entity is also being investigated in a number of European countries, including France. In two letters dated 9 and 11, Checkout’s CEO Guillaume Pousaz severed ties with the leading crypto exchange.
In its announcement, Pousaz cited “reports of regulators’ actions and orders in relevant jurisdictions” and “inquiries from partners,” signalling its intention to sever ties with its largest-scale customer.
The exchange has officially been left out to dry by Checkout, which processed between $300M and $400M for the exchange in the UK. The contract news comes as a surprise, given the size of the transaction.
On the one hand, Checkout completed $2B in trades for Binance in one month in 2021, resulting in Checkout securing $1B in funding, raising the company’s worth to $40B, and making its CEO one of Europe’s richest men.
Checkout, on the other hand, is actively attempting to improve its reputation, moving away from the stigma associated with processing payments for porn and gambling sites.
Binance, according to Cryptopolitan, has not taken this decision lightly. The crypto giant disapproved of Checkout’s reasoning for terminating the contract and alluded to possible legal action.
Dewi Mustajab, a spokesperson for Binance, emphasized the company’s dedication to developing an “industry-leading compliance program” and expressed optimism for fostering trust with regulators and partners. Mustajab also guaranteed that Checkout’s decision would not have any impact on Binance’s services.
