The world’s leading crypto exchange Binance continues to face trouble in Europe with a major banking partner pulling out of the partnership with the exchange. Binance announced that its euro banking partner, Paysafe Solutions, will stop supporting euro payments for the cryptocurrency exchange from September 25.
This is coming on the heels of regulators in the UK expressing concern over Binance’s use of the country’s payment network.
“Following this date, you will be required to use new banking details to make EUR deposits into your Binance fiat wallet and may be required to accept new terms and conditions,” the exchange notified users.
The new changes will however only affect euro deposit and withdrawal functions provided by Paysafe, such as through Bank Transfer (SEPA). Paysafe had entered a partnership with Binance earlier this year to facilitate euro deposits and withdrawals, but this attracted the attention of the FCA which expressed concern over the deal, leading to the company’s withdrawal of its services.
This is a common occurrence with crypto companies in many countries. Binance has faced a similar challenge in Australia when its major fiat banking partner withdrew its services due to regulatory pressure. The exchange is still looking for a replacement for the partner at this point.
Binance Rejected in Germany
Binance has faced several regulatory challenges in the US and is till in court over allegations of securities laws violation and mismanagement of customer funds. The challenges have spread to Europe where several regulators have either denied the crypto giant regulatory license or ordered it to stop offering its services.
Germany is the latest to deny the exchange an operational license. A local financial news website, Finance Forward reported that the financial regulator in Germany, BaFin, is not willing to grant operational license to Binance. However, Binance has expressed determination to meet all the conditions set by BaFin in order to operate legally in the country.
The exchange recently expressed the same determination when it was denied an operational license in the Netherlands, forcing it to withdraw its services from the country. Even more recently, regulators in Belgium ordered the exchange to stop offering services to Belgians since the partners offering the services were not based in the EEA.
These new developments have complicated Binance’s situation, making it more difficult for the exchange to operate, particularly in Europe. The pressure has also made it necessary for Binance to look elsewhere for a welcoming environment.
Binance Mulls Focus on Middle East
With the multifaceted challenge that Binance is facing in the US and in Europe, the exchange recently indicated it may be focusing on the Middle East. Clearly, the exchange is attracted to the regulatory approach in the region which although strict, is open to supporting the growth of crypto and blockchain, particularly in the United Arab Emirates.
The government of the country has once and again shown its commitment towards developing and making itself a major hub for blockchain and crypto technology. Binance CEO had earlier mentioned his desire to build a physical global headquarters in Dubai, due to its friendliness towards crypto.
With the current situation, it seems that dream will finally come into fruition as Binance seeks a crypto haven to to thrive in. Other exchanges like Coinbase may not be left out of the decision to move to a saner climate for crypto if the US does not change its approach.
