Binance Makes Users Convert Euros to USDT After Paysafe Partnership Ends
Paysafe's unexpected suspension of euro deposits impacts Binance's European users. Binance advises converting EUR balances to USDT.
Paysafe's decision to suspend euro deposits on September 25th came unexpectedly. This partnership had been essential in facilitating fiat deposits and withdrawals for Binance's European users, making its decision to stop processing EUR deposits for Binance users more impactful.
Binance, in response, quickly advised its European user base to convert their EUR balances to Tether's USDT before the end of October. While the option to withdraw euro balances to bank accounts remains open for users, the trading of EUR spot trading pairs came to a stop on September 28th at 4:00 am UTC. Furthermore, the Binance Convert feature, which allows users to exchange tokens, now faces restrictions for EUR transactions.
"The sudden and inexplicable decision by Paysafe will cause a brief interruption to the following services. We apologize for any inconvenience."
Binance announcement for Paysafe users. (Source: Binance)
In the face of these developments, Binance's communication with its user base has been proactive. The exchange has emphasized the temporary nature of this situation, assuring users that they are actively working on integrating new fiat channels. A representative from Binance highlighted their commitment to resolving the situation, stating:
"This process will take several days to complete and we will provide regular updates to affected users to let them know when full functionality can be restored. We look forward to having our new fiat partner up and running as soon as possible."
Binance's trouble with Paysafe is one of the many, considering the recent challenges the exchange has faced. In the Netherlands, Binance made headlines when it announced its departure from the market after failing to secure a virtual asset service provider (VASP) license. This decision was closely followed by an order from Belgian officials, directing Binance to suspend its operations in the country, citing non-compliance with local regulations. However, Binance later resumed new user registrations for Belgian residents.
In Russia, amid concerns about the platform allegedly not adhering to financial sanctions against the country, Binance sold its business to a new crypto exchange named CommEX. The challenges don't end there. In the U.S., Binance is currently grappling with legal challenges from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The allegations range from the sale of unregistered securities to unauthorized operations.