Paysafe pulls support for Binance users ahead of deadline
Some Binance customers in the European Union (EU) are reportedly facing issues with withdrawing euros from the platform ahead of the planned termination of support by Paysafe, the exchange’s European payments partner.
Paysafe is set to cease its support for Binance customers on September 25, but some users have reported being locked out of their accounts before the official deadline.
Paysafe told CoinDesk that it cannot speculate on individual customer issues and that it is Binance who holds the customer relationship. The payment giant added that its services for Binance customers “are fully operational with our contractual and regulatory obligations.” On its part, Binance stated that Paysafe had put only a small portion of users through an “earlier closure review.”
Binance users reported in August an abrupt suspension of Single Euro Payments Area (SEPA) transfers for EUR payments. This halt came about a month earlier than the initially announced deadline.
Binance’s customer support channel on Twitter stated that SEPA transfers for EUR are currently on hold. However, the team assured users that the service will remain accessible until September 25, 2023.
Binance’s European operations has been in trouble since its banking partner, Paysafe Payment Solutions, decided to withdraw its support for global exchange. NYSE-listed Paysafe, a retail payment processor, announced that starting from September 25, 2023, it will no longer facilitate euro-denominated transfers to and from Binance.
As a result of this development, Binance will no longer be able to utilize Paysafe’s embedded wallet solution within the European Economic Area (EEA). The decision by the London-based payments firm comes amidst increased regulatory scrutiny on Binance, with a focus on combating money laundering activities.
Although Binance plans to find an alternative provider, for the time being, all other methods of depositing and withdrawing fiat currencies, as well as cryptocurrency trading on Binance.com, will remain unaffected.
Paysafe had been Binance’s banking partner in the UK, facilitating transactions through the Faster Payments network. However, the firm announced in March it will discontinue its services for UK customers of Binance, citing a complex and difficult regulatory environment.
The UK Financial Conduct Authority (FCA) raised concerns over Binance’s partnership with Paysafe as it gives the exchange access to the extensive retail payments network. At the time, banks such as Barclays had withdrawn their support to the exchange, resulting in the suspension of banking services.