In a recent development, leading cryptocurrency exchange Binance has urged its European users to convert their euro holdings into Tether (USDT) as banking partner Paysafe suddenly withdraws support. The move is the latest challenge in Binance’s ongoing regulatory and lending issues in Western markets.
EUR deposits stopped
On September 28, Binance released an official announcement informing European Paysafe users about the change. Without prior warning, Paysafe “unilaterally decided to suspend EUR deposits for Binance users.” As a result, Binance users with euro balances in their accounts are encouraged to convert these balances to stablecoin Tether (USDT) before October 31. While the option to withdraw EUR balances to bank accounts is still available, Binance emphasized the importance of Paysafe users taking proactive measures before the October deadline.
The consequences of Paysafe’s decision are significant. Paysafe users will no longer be able to participate in EUR spot trading pairs on the platform as of September 28, 07:00 CET. Additionally, all open orders will be automatically canceled after one hour. There will also be restrictions on EUR transactions on Binance Convert, a service similar to token swaps.
How did Binance respond to the situation?
Binance expressed its commitment to quickly resolve this issue. The cryptocurrency exchange is actively working to integrate new fiat channels to accommodate its European user base. Although Paysafe’s decision has created a temporary obstacle, Binance aims to provide alternative solutions for its users in the near future. This latest development adds to a number of regulatory challenges Binance faces in Western markets. Paysafe’s decision comes after UK financial regulators suspended support for British pound transactions earlier this year due to concerns about the partnership.
In June, Binance announced its withdrawal from the Netherlands, and shortly after, Belgian authorities ordered the exchange to discontinue its services. However, on September 26, it was announced that new registrations for Belgian residents had reopened, signaling a potential shift in the regulatory environment. While Binance grapples with regulatory and banking partners challenges in Western markets, it is taking proactive steps to ensure its platform continues to operate smoothly for European users. The switch to Tether (USDT) for euro assets is seen as a temporary measure while the exchange works to integrate new fiat channels. Binance remains committed to its mission of providing reliable cryptocurrency services to its global user base, and this latest development is critical.
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