Binance halts EUR trading for these users
- Binance had initially partnered with Paysafe to resume Single Euro Payments Area (SEPA) bank transfers for customers.
- It remains uncertain when Binance will reinstate alternative EUR support.
Binance [BNB] has advised its users, who rely on Paysafe for EUR transactions, to convert their balances to USDT [Tether] before the end of October. This decision comes in response to Paysafe, Binance’s European banking partner, abruptly withdrawing its services from the platform.
Paysafe’s abrupt decision to cease processing EUR deposits on a recent Monday triggered the sudden halt to buying, selling, trading, and investing in cryptocurrencies via EUR on Binance, leaving users to grapple with the abrupt disruption.
Paysafe’s move to withdraw its services left Binance perplexed, with the exchange describing it as “sudden and inexplicable.” However, it turns out that Binance had previously notified its users in June about Paysafe’s impending departure.
Notably, in June, a Binance spokesperson had stated,
“Binance will be changing the provider for EUR deposits and withdrawals via Bank Transfer (SEPA). Our current partner, Paysafe, will no longer be providing these services to Binance users from 25 Sept, 2023.”
The spokesperson had further noted that users would need to update their banking details for SEPA services.
Search for a replacement continues
Binance is actively working to identify a new fiat partner for EUR services. In the meantime, the exchange had temporarily suspended EUR spot trading.
Inasmuch, the exchange also temporarily disabled the conversion of crypto to EUR for users who previously signed up for fiat services with Paysafe. However, most other Binance services, including withdrawing fiat to users’ bank accounts, remained unaffected.
Binance’s search for a replacement continued at press time.
The exchange stated,
“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.”
To accommodate users during this transitional phase, Binance has allowed them to convert their EUR balances to USDT by 31 October. Although buying, selling, trading, and investing services in EUR will face a “brief interruption,” users can still withdraw their EUR balances to their bank accounts.
Furthermore, Binance Convert will enter a “reduce-only mode,” allowing users to convert EUR to other cryptocurrencies through market orders, but not the reverse. Limit orders on Binance’s Auto-Invest EUR plans for Paysafe users have been closed, and the plans have been paused.
Another challenge for Binance to prehend
This recent development adds to Binance’s regulatory challenges in Europe. During the summer, the exchange announced its exit from the Netherlands due to a lack of regulatory approval.
It also sought to deregister its local entity in Cyprus and faced an investigation in France for alleged money laundering.
However, this week, Binance resumed its exchange services in Belgium after being instructed to cease operations by the country’s regulator three months earlier.