Payment Processor Woes Lead Binance to Limit European Transactions

<p>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.</p><p>Binance Allegedly Suspends
Euro Deposits and Withdrawals via SEPA</p><p>Binance
Customer Support's official Twitter account announced that the <a href="https://www.financemagnates.com/terms/e/exchange/">exchange</a> 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).</p><p>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.</p><p>A
screenshot showcasing the tweet's content is available below:</p><p>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.</p><blockquote><p lang="en" dir="ltr">The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then – so stay tuned.- VS</p>— Binance Customer Support (@BinanceHelpDesk) <a href="https://twitter.com/BinanceHelpDesk/status/1693659553383223553?ref_src=twsrc%5Etfw">August 21, 2023</a></blockquote><p>This news
comes months after Binance informed its users that <a href="https://www.financemagnates.com/cryptocurrency/binance-loses-major-eur-banking-partner-amid-regulatory-concerns/" target="_blank" rel="follow">Paysafe Payment Solutions</a>,
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.</p><p>Binance Responds to
Allegations</p><p>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.</p><blockquote><p lang="en" dir="ltr">The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then – so stay tuned.- VS</p>— Binance Customer Support (@BinanceHelpDesk) <a href="https://twitter.com/BinanceHelpDesk/status/1693659553383223553?ref_src=twsrc%5Etfw">August 21, 2023</a></blockquote><p>Furthermore,
the exchange's press office explained that due to "routine compliance
checks," some users' accounts might be closed earlier than others.</p><p>This is not
the first time Binance has suspended withdrawals. Last year, the exchange
temporarily halted Bitcoin (BTC) withdrawals from its platform <a href="https://www.financemagnates.com/cryptocurrency/stuck-transaction-forces-binance-to-pause-btc-withdrawals/" target="_blank" rel="follow">due to 'stuck transactions'.</a> However, the issue was resolved <a href="https://www.financemagnates.com/cryptocurrency/binance-resumes-btc-withdrawals-hours-after-halt/" target="_blank" rel="follow">the same day</a>.</p><p>Binance Faces Challenges
on Multiple Fronts</p><p>Binance's
regulatory troubles <a href="https://www.financemagnates.com/cryptocurrency/sec-lawsuit-heats-up-the-war-between-binance-and-the-us/" target="_blank" rel="follow">escalated in early June</a> when the US SEC brought a total of
13 charges against Binance, its two <a href="https://www.financemagnates.com/terms/a/affiliates/">affiliates</a>, and Founder, Changping Zhao.
These charges included operating illegal trading platforms, offering
unregistered crypto asset securities, and mixing customers' funds.</p><p>This led to
unfavorable regulatory decisions for the exchange in other jurisdictions,
mainly in Europe. In June alone, Binance exited the <a href="https://www.financemagnates.com/cryptocurrency/binance-shrinks-eu-presence-exits-netherlands-after-cyprus/" target="_blank" rel="follow">Netherlands, Cyprus</a>, and
<a href="https://www.financemagnates.com/cryptocurrency/binance-markets-limited-deregisters-with-the-uks-fca/" target="_blank" rel="follow">the UK</a>, and faced scrutiny from French regulators over allegedly offering
illegal cryptocurrency services.</p><p>Binance's
regulatory challenges in the US and Europe have prompted it to consider
<a href="https://www.financemagnates.com/cryptocurrency/binance-mulls-over-middle-east-focus-amid-regulatory-pressure-in-the-west/" target="_blank" rel="follow">shifting its focus to the Middle East</a>. 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.</p><p>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, <a href="https://www.financemagnates.com/cryptocurrency/rise-of-the-crypto-underdogs-low-tier-exchanges-gain-market-share-after-binance-falters/" target="_blank" rel="follow">have benefited the most</a> from Binance's
waning popularity.</p>

This article was written by Damian Chmiel at www.financemagnates.com.