Binance, on Thursday, September 28, 2023, announced that there would be a brief interruption of euro (EUR) payments due to Paysafe’s unilateral decision “to stop processing EUR deposits” for the exchange’s users.
The exchange stated that Paysafe users will no longer be able to trade EUR spot trading pairs on its platform from today, September 28, at 4:00 AM (UTC), and any open orders in these pairs will be canceled within an hour after this time. Binance Convert, the exchange’s token swap service, will also face restrictions for EUR transactions.
In response to this development, Binance issued guidance to its Paysafe users, advising them to convert their EUR balances to USDT (Tether) by October 31, 2023. The exchange assured users that they could still withdraw their EUR balances from Binance accounts to their bank accounts.
In its statement, Binance expressed regret for any inconvenience caused by Paysafe’s unexpected decision.
“The sudden and inexplicable decision by Paysafe will cause a brief interruption to the following services. We apologize for any inconvenience.”
Paysafe had previously played a crucial role in facilitating fiat deposits and withdrawals for Binance users in Europe via Bank Transfer in the European Union’s Single Euro Payments Area (SEPA). However, in June 2023, Paysafe announced its intention to cease support for this service by September 25, 2023, following a “strategic review” of its operations. Earlier, in May, Paysafe had also discontinued support for British pound transactions due to concerns raised by UK financial regulators.
This development comes at a time when Binance is grappling with heightened regulatory scrutiny worldwide. The exchange is especially facing mounting regulatory challenges in Europe, with several European countries, including the Netherlands, France, and the United Kingdom, intensifying their oversight of cryptocurrency exchanges.
Notably, Binance’s application for an operating license in Germany was denied earlier this year, and the exchange was compelled to suspend operations in Belgium three months ago. While it has recently resumed operations in Belgium, Binance does not seem to be out of the woods yet.
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