In a significant development on September 28, Binance, one of the world’s largest cryptocurrency exchanges, issued an urgent advisory to its European user base, specifically those utilizing Paysafe, imploring them to convert their euro holdings into Tether (USDT) by October 31. The reason cited was the unilateral decision by Paysafe to cease processing euro deposits for Binance users.
This move by Paysafe effectively means that Binance users in Europe will no longer be able to engage in euro spot trading pairs, starting from September 28 at 4:00 am UTC. Additionally, any open orders will be canceled an hour later. Furthermore, the functionality of Binance Convert, which operates similarly to a token swap, will also be restricted for euro transactions.
Despite these constraints, Binance assured users that they could continue to withdraw their euro balances from their Binance accounts to their respective bank accounts. Nevertheless, the exchange emphasized, “Paysafe users are advised to take appropriate actions in advance.”
Paysafe had suspended euro deposits on September 25, signaling a major setback for Binance, which had previously relied on Paysafe to facilitate fiat deposits and withdrawals for its European user base, including transactions through bank transfers within the European Union’s Single Euro Payments Area (SEPA).
The exchange expressed its determination to mitigate the impact of this loss, stating, “We are working to integrate new fiat channels onto Binance soon.”
This development is the latest in a series of challenges for Binance, particularly in Western markets. Paysafe had already discontinued support for transactions in British pounds earlier in the year, citing concerns raised by UK financial regulators. Binance’s troubles in Europe were further compounded when it announced its departure from the Netherlands in June, followed swiftly by an order from Belgian officials to cease its services. However, a glimmer of hope emerged on September 26 when it was announced that new registrations from Belgian residents had reopened, suggesting a potential turnaround in the exchange’s fortunes.
As the cryptocurrency industry grapples with evolving regulatory landscapes worldwide, Binance’s ability to navigate these challenges while maintaining user trust remains under scrutiny.