Paysafe Payment Solutions, the European banking partner of cryptocurrency exchange Binance, has announced that it will cease offering its embedded wallet solution to Binance across the European Economic Area (EEA) starting September 25th. The decision comes as Binance faces increasing regulatory scrutiny regarding anti-money laundering measures.
In an email to Reuters, Paysafe stated, “Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months.” While Binance confirmed the news, it did not disclose details about its new banking partner for euro deposits and withdrawals through the Single Euro Payments Area (SEPA). A Binance spokesperson mentioned that the company will provide further information in due course. Typically, Binance accesses SEPA through payment intermediaries.
However, it’s important to note that the discontinuation of Paysafe’s wallet solution will not impact other fiat currency deposit and withdrawal methods or the buying and selling of cryptocurrencies on Binance.com, according to the spokesperson.
Paysafe’s decision coincides with the mounting regulatory pressure on Binance to combat money laundering. Earlier this month, Binance and its US affiliate reached an agreement with the Securities and Exchange Commission (SEC) to ensure that US customer assets remain within the country until the resolution of a comprehensive lawsuit filed by the regulatory agency.
Last year, Binance formed a partnership with Paysafe to enable users to deposit sterling via Faster Payments, a network that oversees payments and bank account transfers in the UK.
As Binance navigates these regulatory challenges, the cryptocurrency market continues to experience fluctuations. Bitcoin (BTC) and Ethereum (ETH) have recently seen rallies, with gains in profits, while several altcoins have also recorded positive momentum. Meanwhile, Bitcoin witnessed a dip in pricing to $30,500, resulting in losses for Ethereum and stablecoins.
The discontinuation of wallet services by Paysafe signifies another hurdle for Binance, highlighting the growing complexity of regulatory compliance within the cryptocurrency industry. Investors and industry observers will closely follow Binance’s efforts to find a new banking partner and address regulatory concerns, as the outcome will likely shape the exchange’s future operations in the EEA.