Binance’s European Banking Partner Paysafe Withdraws Support

As crypto exchange Binance continues to face the regulatory heat across the globe, banking partners have started distancing themselves from the exchange. On Thursday, June 29, Binance’s European banking partner Paysafe Payment Solutions announced that it would stop offering embedded wallet solutions to the exchange across the European Economic Area (EEA), from September 25.

“Paysafe and Binance are now working to mutually implement an orderly and fair process to terminate this service over the next few months,” said Paysafe, in an email to Reuters.

As a result, Binance will have to change its provider of Euro deposits and withdrawals via the Single Euro Payments Area (SEPA). However, it isn’t clear as to whom shall Binance choose after Paysafe. So far, crypto exchange Binance has been accessing SEPA through payment intermediaries.

Last year, Binance collaborated with Paysafe to enable its users to deposit British pounds using Faster Payments. Faster Payments is a network responsible for managing payments and bank account transfers in the UK.

Earlier this month, Binance and its US affiliate made an agreement with the Securities and Exchange Commission (SEC). The agreement ensures that assets belonging to customers from the United States will stay in the country until a lawsuit filed by the SEC is resolved.

Binance Losing Market Share

Following the regulatory action by the SEC earlier in June, the crypto exchange has been losing market share. However, despite this, Binance still maintains a dominant position over other global cryptocurrency exchanges.

Binance is facing the regulatory heat not only in the US but across the world. In April, the Australian Securities and Investments Commission canceled Binance’s license for its derivatives business. After that, local banks and payment partners stopped working with Binance Australia. Then, last month, Binance announced it would leave Canada due to new crypto regulations being implemented in the country.

Due to various regulatory and banking challenges, Binance has been forced to exit multiple countries. On June 16, the company announced its departure from the Netherlands because its registration attempt failed. It also faced an investigation by French authorities after establishing itself as its European base. Furthermore, on June 23, Belgian authorities ordered Binance to stop its operations in the country.