In a notable development that underscores the mounting regulatory pressures faced by cryptocurrency exchange Binance, Paysafe Payment Solutions, its European banking partner, has chosen to sever ties and withdraw its support.
The decision by Paysafe to discontinue its embedded wallet solution across the European Economic Area (EEA) adds to the growing list of banking partners distancing themselves from Binance, amid increasing scrutiny from regulators worldwide.
The move necessitates the exchange to swiftly identify an alternative provider for euro deposits and withdrawals, as it navigates a complex landscape rife with regulatory challenges.
New Provider for Euro Deposits And Withdrawals Needed
Binance’s European banking partner, Paysafe Payment Solutions, has announced its decision to cease offering its embedded wallet solution to the cryptocurrency exchange across the European Economic Area (EEA) starting from September 25.
Paysafe and Binance are reportedly working to implement a fair and orderly process to terminate their partnership over the coming months.
Paysafe told Reuters that “Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months.”
Binance Confronts Regulatory Heat as Banking Partners Distance Themselves
In response to this development, Binance must identify a new provider for euro deposits and withdrawals through the Single Euro Payments Area (SEPA). While the crypto exchange has been utilizing payment intermediaries to access SEPA, it remains uncertain which alternative provides the exchange will choose after parting ways with Paysafe.
Last year, Binance teamed up with Paysafe to enable users to deposit British pounds using the Faster Payments network, which manages payments and bank account transfers in the UK.
Earlier this month, Binance and its United States affiliate reached an agreement with the Securities and Exchange Commission (SEC) to ensure that customer assets from the US remain within the country until the resolution of a comprehensive lawsuit filed by the regulatory agency.
Binance’s market share has experienced a decline following the SEC’s actions. Moreover, the exchange has faced regulatory setbacks in various countries, such as the cancellation of its derivatives business license by the Australian Securities and Investments Commission and the imposition of new crypto regulations in Canada, leading to its withdrawal from the country.
Due to failed registration attempts and orders from local authorities, these ongoing challenges have compelled the exchange to exit multiple jurisdictions, including the Netherlands and Belgium.
Binance’s native BNB token has suffered as a result of the exchange’s regulatory troubles. The coin is currently sitting at $235 after declining over 5% in the last week alone.
