Crypto exchange Binance has faced a setback as it lost the support of its banking partner and is now urging its users to convert their euros into Tether (USDT) before the end of October. In an announcement on September 28, Binance informed its European Paysafe users that they should convert their EUR balances in their Binance accounts to USDT by October 31. This change is due to Paysafe’s unilateral decision to stop processing EUR deposits for Binance users.
Despite this, Binance clarified that users can still withdraw their EUR balances from their Binance accounts to their bank accounts. However, it is advised that Paysafe users take appropriate actions in advance. Paysafe suspended euro deposits on September 25, which had previously facilitated fiat deposits and withdrawals for Binance users in Europe, including via bank transfers in the European Union’s Single Euro Payments Area (SEPA).
To accommodate the change, Binance announced that Paysafe users will no longer be able to trade EUR spot trading pairs starting from September 28 at 4:00 am UTC. Open orders in euros will be canceled one hour later. Additionally, Binance Convert, which operates as a token swap, will also have restrictions for EUR transactions.
In response to the situation, Binance stated that they are actively working to integrate new fiat channels onto their platform soon. This suggests that alternative banking partners or fiat options may become available to Binance users in the future.
This news comes as Binance continues to navigate regulatory and debanking challenges in the Western world. Paysafe’s decision to withdraw support for British pound transactions in May was another blow. The move was a result of concerns raised by UK financial regulators, highlighting the increasing scrutiny faced by cryptocurrency exchanges.
Binance’s troubles have also extended to other European countries. In June, the exchange announced its departure from the Netherlands, and soon after, Belgian officials ordered Binance to halt its services. However, on September 26, it was announced that new registrations from Belgian residents had reopened, signaling a potential resolution to the issues faced by Binance in Belgium.
Overall, Binance’s loss of support from its banking partner has necessitated a shift for its European Paysafe users to convert their euros into Tether. Despite the setback, Binance remains committed to providing alternative fiat channels and addressing regulatory challenges.
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