Strike against Binance: That’s why partner bank distances itself
Another blow hits Binance. An important partner bank in the euro area distances itself from the crypto exchange. Existing problems of the world market leader could deepen in this way. The background is apparently the smoldering regulatory conflict in the USA.
Another blow hits Binance
Another blow hits the crypto exchange Binance. The world market leader among crypto exchanges has already suffered severe slumps over the past few months. According to a study by Kaiko , the trading volume of Bitcoin on the platform fell by as much as 70 percent in the second quarter of this year. Now a previous partner bank is also distancing itself from the company.
Times are getting darker for Binance . Due to conflicts with US authorities, the trading volume of the US subsidiary Binance.US also fell drastically. In the last 24 hours, it’s down to just $16 million. Before a lawsuit from the SEC in early June, trading volume was a good $130 million a day.
In the future, the international company Binance.com, founded in China in 2017, could have further difficulties in maintaining business operations as before. The reason for this: Partner banks are increasingly saying goodbye to a cooperation.
Most recently, Paysafe Payment Solutions announced that it was dissolving its partnership with Binance. The company serves as a partner to the crypto exchange in Europe to enable the exchange between fiat money and cryptocurrencies, which is necessary for many crypto investors.
“Paysafe and Binance are now working together to implement an orderly and fair process to end this service over the next few months.” Explained Paysafe in an email to Reuters .
According to Binance, the end of the cooperation is not a problem. They are already working on implementing SEPA transfers with the help of another partner. We want to announce who this is in good time.
Binance is not encountering such a problem for the first time. In the spring, the crypto exchange had to find a new partner in the USA due to the unexpected end of the Signature and Silvergate banks.
In Europe, thanks to Paysafe, the option of SEPA transfers for deposits and withdrawals was made available in early 2022 after it was missing for almost six months.
That is why the partner bank is distancing itself from crypto exchange
Paysafe itself has not yet publicly announced why the partnership should suddenly end. However, the current situation in the crypto industry allows conclusions to be drawn about a possible motive.
The partner bank Paysafe is probably distancing itself from Binance because the reputation of the crypto exchange is suffering more and more. Conflicts with the US Securities and Exchange Commission (SEC) are to blame for this. Some observers are convinced that Binance is a particularly big thorn in the side of the SEC for its lack of compliance.
Paysafe probably wants to avoid critical disputes with authorities after the SEC has filed a lawsuit against Binance with a wealth of allegations.
From September 25, SEPA transfers to Binance accounts commissioned by customers will no longer work, at least via Paysafe. It is unclear whether the crypto exchange will be able to integrate a new partner in time by then.
“Paysafe and Binance are now working together to implement an orderly and fair process to terminate this service over the next few months.” Explained Paysafe to Reuters.
Transactions that use a different fiat currency instead of the euro are not affected by possible restrictions.
