Binance, a major cryptocurrency exchange, has encountered further challenges in its European operations as Paysafe, its Euro payment partner, has confirmed that it will cease its bank transfer services effective September 25, according to a statement provided to CryptoSlate.
A spokesperson from Paysafe substantiated this decision in an email on June 29, stating that the company had opted to discontinue its embedded wallet solution for Binance across the European Economic Area (EEA) region. The spokesperson added that Paysafe and Binance are presently collaborating to establish a fair and orderly process for terminating this service within the next few months. Furthermore, Paysafe has also verified that it is already in the process of withdrawing the embedded wallet service in the United Kingdom.
Despite these developments, Binance has assured its users in the EEA region that they can still deposit and withdraw other fiat currencies supported by the exchange. Binance has faced mounting regulatory challenges in Europe, with reports suggesting that it has exited yet another European country. Finance Forward, a German publication, reported that Germany’s financial regulator, BaFin, declined to grant Binance a cryptocurrency custody license. When approached for comment, a Binance spokesperson stated that the exchange could not disclose specific details about its discussions with regulators. Nevertheless, the spokesperson emphasized that Binance has assembled the necessary team and implemented measures to facilitate ongoing dialogues with German regulators.
Recently, Binance has withdrawn from several European markets, including Austria, the Netherlands, and Cyprus. The company has stated that its primary focus in the region is to ensure compliance with the forthcoming regulations outlined in the Markets in Crypto Assets (MiCA) framework. As financial regulators tighten their grip, Binance has encountered increasing difficulty in securing new banking partners worldwide.
In February, the exchange temporarily suspended fiat transfers denominated in US Dollars after its banking partner, Signature Bank, ceased processing crypto transactions valued below $100,000. In March, Binance announced the suspension of British Pound deposits and withdrawals due to regulatory obstacles cited by its payment partner, Skrill. Additionally, earlier this month, Binance’s subsidiary in the United States, Binance US, transitioned into a crypto-only exchange following the abrupt termination of banking services by its partners.