Binance suffers another setback. The largest crypto exchange loses its European banking partner, Paysafe Payment Solutions. This will inevitably have consequences for deposits and withdrawals in euros via the SEPA cross-border payment network.
Paysafe ends its collaboration with Binance: the explanations
Against all expectations, Paysafe Payment Solutions announces the end of its collaboration with the Binance crypto exchange. Concretely, Paysafe will stop supporting the crypto platform from September 25.
“This decision follows a strategic review by Paysafe, which has also decided to withdraw its services in the United Kingdom,” he explains in an email.
What are the consequences for Binance’s European operations?
Those who make deposits and withdrawals in euros via the SEPA bank transfer service will be directly impacted by this change. To continue using SEPA services on Binance after September 25, they will need to:
- update their bank details,
- (possibly) agree to new terms and conditions.
This announcement comes at a time when Binance is facing increasing regulatory pressure in Europe and the United States. Recall that the exchange is the subject of a complaint filed by the SEC.
That’s not all ! The end of this partnership will also more complicated and potentially more expensive euro transactions. Some experts are predicting a decline in Euro trading volume on Binance. And this will obviously have a significant impact on the liquidity of the crypto platform.
Paysafe’s announcement may also prompt users to look for alternatives to Binance for transactions in euros. Note that Binance offers other deposit and withdrawal options on its platform. Cryptocurrencies and credit cards are among them. They will not be directly affected by the loss of its banking partner in euros.
In any case, Binance will have to quickly find new banking partners in Europe. Otherwise, it will struggle to maintain its services in euros. The next few weeks will therefore be crucial for the exchange as it seeks to overcome these obstacles and regain user confidence. To be continued…
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