Just when it seems that Binance, embroiled in regulatory issues, takes a small step forward, it faces a setback from another jurisdiction, complicating its decentralized operations worldwide. According to recent reports, the exchange allegedly grapples with payment issues in Europe, leading to the suspension of euro deposits and withdrawals. However, Binance's spokesperson insists that the service operates as usual.
Binance Allegedly Suspends Euro Deposits and Withdrawals via SEPA
Binance Customer Support's official Twitter account announced that the exchange had temporarily suspended deposits and withdrawals using Single Euro Payments Area (SEPA) transfers. SEPA is a European payment standard that facilitates quick and secure card-based transfers within the European Union (EU).
In a tweet posted on 20 August, the exchange stated they were uncertain when SEPA transfers would be reinstated. They mentioned that their current payment provider could no longer support them. This news reignited discussions about Binance's regulatory issues in Europe, but the tweet was later removed from their official profile.
A screenshot showcasing the tweet's content is available below:
The tweet supposedly responded to a Binance customer who claimed to have purchased a significant amount of euros and could not withdraw the funds because the "Paysafe account was closed early." In the latest update on 22 August, he claimed that he still could not access his funds after extensive discussions with support.
The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then - so stay tuned.- VS
— Binance Customer Support (@BinanceHelpDesk) August 21, 2023
This news comes months after Binance informed its users that Paysafe Payment Solutions, the company responsible for euro payments, was halting its collaboration with the exchange. Paysafe will cease to handle payments in the euro after 25 September.
Binance Responds to Allegations
As mentioned earlier, Binance's tweet about temporarily suspending euro transfers was deleted. In a separate tweet, Binance Customer Support clarified that the message was sent in error and that SEPA deposits and withdrawals would continue uninterrupted until 25 September.
The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. The Customer Support message was sent in error. We apologise for the inconvenience. And, we will have alternatives for our users in place before then - so stay tuned.- VS
— Binance Customer Support (@BinanceHelpDesk) August 21, 2023
Furthermore, the exchange's press office explained that due to "routine compliance checks," some users' accounts might be closed earlier than others.
This is not the first time Binance has suspended withdrawals. Last year, the exchange temporarily halted Bitcoin (BTC) withdrawals from its platform due to 'stuck transactions'. However, the issue was resolved the same day.
Binance Faces Challenges on Multiple Fronts
Binance's regulatory troubles escalated in early June when the US SEC brought a total of 13 charges against Binance, its two affiliates, and Founder, Changping Zhao. These charges included operating illegal trading platforms, offering unregistered crypto asset securities, and mixing customers' funds.
This led to unfavorable regulatory decisions for the exchange in other jurisdictions, mainly in Europe. In June alone, Binance exited the Netherlands, Cyprus, andthe UK, and faced scrutiny from French regulators over allegedly offering illegal cryptocurrency services.
Binance's regulatory challenges in the US and Europe have prompted it to considershifting its focus to the Middle East. Alex Chehade, the General Manager of Binance Dubai, believes the United Arab Emirates (UAE) could become the primary destination for cryptocurrency businesses seeking clear and favorable regulations.
Binance has lost a significant market share in the US, which smaller exchanges have capitalized on. Data from CCData indicates that exchanges based in Seychelles, including KuCoin and Huobi Global, have benefited the most from Binance's waning popularity.
This article was written by Damian Chmiel at www.financemagnates.com.
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