Binance France is facing the expiration of its partnership with the banking provider Paysafe. It has suggested that its customers swiftly convert any fiat money held on the platform into cryptocurrencies. This recommendation came in light of the recent termination of its banking partnership. The partnership has supported euro deposits and withdrawals through SEPA bank transfers.
Binance France Yet to Secure Replacement for Paysafe
The partnership between Binance France and Paysafe officially ended on September 25. The conclusion was announced in late June. As of now, Binance France has not secured a new banking partner to replace Paysafe.
On September 26, a spokesperson for the company confirmed to the French radio station BFM that, for the time being, Binance France has advised its users to convert their fiat balances into cryptocurrencies without incurring additional fees. The spokesperson added that Binance is actively working to onboard new partners. It expects to provide an update in the near future.
Users have reported that the mobile application now automatically displays a suggestion to convert fiat balances into cryptocurrencies upon startup. This development follows the previous difficulties that Binance customers in Europe faced. In late August, the exchange temporarily suspended euro withdrawals and deposits via SEPA due to a lack of payment provider support.
Binance has been facing ongoing regulatory challenges, particularly in Europe. It has come under scrutiny for alleged non-compliance with financial sanctions against Russia. In June, Binanceannounced its exit from the Netherlands. Moreover, it faced an order from the Belgian authorities to cease all services less than a week later.
Additionally, on September 27, Binance confirmed its complete exit from the Russian market by selling its business to the newly launched cryptocurrency exchange platform, CommEX.
Binance Faces Euro Payment Disruption amid Regulatory Scrutiny
Finance Magnates reported earlier that Binance had announced that its euro banking partner, Paysafe Solutions, would cease supporting payments for the exchange, effective from September 25.
This decision comes in response to concerns raised by the UK's financial regulator, the Financial Conduct Authority (FCA), regarding Binance's utilization of the UK's payment network.
From September 25, Binance users will be required to use new banking details to make EUR deposits into their Binance fiat wallets. They may need to accept new terms and conditions. Notably, this change solely affects euro deposits and withdrawals conducted through Paysafe, particularly Bank Transfers (SEPA). It does not impact other fiat deposit or withdrawal services.
The Financial Times reported that the FCA had expressed concerns about the Binance-Paysafe partnership. The FCA stated that Paysafe was aware of these concerns and was under close supervision.
Securing payment services in fiat currencies has been a recurring challenge for unregulated cryptocurrencycompanies, such as Binance. Regulatory scrutiny often compels banks and financial service providers to withdraw their support. Binance's situation has intensified as it faces mounting global regulatory pressure.This article was written by Tareq Sikder at www.financemagnates.com.
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