Checkout.com, a London-based credit card processing company, is terminating its contract with Binance! The move is a blow to the crypto exchange, not least because of the role it played in making the payments company one of Europe’s most valuable.
An arbitrary termination according to Binance
Binance, CZ’s crypto exchange platform is not far off. Among her many problems, she now has to handle the case of Checkout.com. According to statements by Guillaume Pousaz, the CEO of the London-based company, the termination of the contract is the result of pressure from regulators and ongoing investigations. The letter also cites concerns regarding Binance’s anti-money laundering, sanctions, and compliance checks.
Furthermore, it should be noted that when launching Checkout.com, Binance had deliberately chosen not to activate 3D-Secure. It is a security system to fight against financial fraud and money laundering. This blunder has made the platform the favorite playground for supporters of organized crime. This is what has undoubtedly also precipitated the regulators to attack the platform.
Regarding Checkout.com, Binance has declared that he did not agree with the reasons for the termination of the contract and that he was considering taking the matter to court.
Another blow for the already weakened crypto exchange
Checkout.com has processed between $300 million and $400 million in Binance transactions over the past few months. The company is the latest payment provider to date. give up the platform, as it faces a plethora of investigations in multiple countries.
The crypto company has grown rapidly over the past few years. However, it has also faced criticism over its regulation and often accused of money laundering. The current situation is a sign that regulators and Binance partners are beginning to lose faith in the exchange.
It remains to be seen how the termination of the Checkout contract will affect Binance. For now, the exchange still has other payment providers. However, this decision may make it more difficult to acquire new partners.
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