Binance, the crypto exchange giant, is experiencing disruption with its payment partner, Paysafe, in Europe. Some European users are experiencing difficulty making withdrawals in euros due to early closures initiated by Paysafe.
End of SEPA services: Binance EU users in disarray
For European Binance users, Paysafe has long been the backbone of fiat transactions, particularly through SEPA transfers. However, everything changed when in June Paysafe revealed its intention to end these services.
The collaboration was officially scheduled to end on September 25. However, well before the announced date, many users, including Ervin Ursic Kovac, faced a sudden interruption of these services.
Ervin testifies: “II made a sale of ether for euros on September 12, but unable to withdraw the amount. To my surprise, a message told me that my account had been closed prematurely.“
Approximately 0.085% of European Binance users with Paysafe accounts are affected by this “early closure”.
In a report from CoinDesk dated September 20, many customers expressed dissatisfaction with the loss of access to Fiat withdrawal services before the deadline, and, unfortunately, complaints persist even after that date. What is really happening, and how does Binance plan to overcome this challenge?
Divergence of responsibilities
A climate of tension is palpable between Binance and Paysafe regarding responsibility for this unfortunate situation. The Exchange claims it did not receive sufficient notice from Paysafe, which counters that resolving the issues is Binance’s responsibility. These contradictory claims leave users in doubt.
Currently, Binance is exploring to find a replacement partner for SEPA transactions. Anticipating the end of its alliance with Paysafe, Binance offers its customers the free conversion of their FIAT balances into cryptos. They can also withdraw their amounts in FIAT.
This is not Binance’s first challenge on European soil. Two years ago, regulatory concerns led to the suspension of SEPA transfers.
Furthermore, Binance is under the radar of the authorities. Due to concerns about managing client funds, the platform had to pack up in several European countries, all in an effort to align with the upcoming European regulation, MiCA.
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