The world’s largest cryptocurrency exchange, Binance, announced onboarding new partners to handle euro deposits and withdrawals. This move comes months after the severance of service by its fiat partner PaySafe in September.
According to an October 19th 2023, statement, Binance announced that it has forged new alliances with fiat partners in a decisive move to restore its European customer base’s faith. The main goal of the signed agreement with the new fiat partners is to ensure the resumption of euro withdrawals and deposits.
Overview
The move follows regulatory and debunking woes in the European Union (EU), where the exchange was forced to look for new banking partners after losing the support of PaySafe in September. Experts at Bitcoin Method official mentioned that the newly minted partnerships promise to usher in many fiat services, encapsulating Euro transactions via Open Banking, SEPA, SEPA instant and crypto trades through bank cards and fiat balances. SEPA (Single Euro Payments Area) encompasses 36 nations and promotes seamless Euro payments within the EU.
Binance noted, “We’ve partnered with several licensed and regulated fiat providers to offer our community a diverse range of fiat services. Newcomers to the crypto realm may find the process of buying or selling crypto confusing and daunting without a simple method. Binance also emphasized that users have begun the transition to the new services offered by a variety of newly authorized and regulated fiat partners.”
Additionally, Binance did not specify which firms it had partnered with. The move of these partnerships is to obliterate the barriers new crypto enthusiasts often face, making selling and buying digital assets a less daunting experience. Binance revealed that an effortless pathway from fiat to crypto and vice versa is pivotal for global digital asset adoption.
Background
This move by Binance follows a series of regulatory roadblocks that the exchange encountered in various European territories. Earlier this summer, the German Financial watchdog rebuffed Binance’s application for a custody licence. On September 4th 2023, the exchange’s product lead, Mayur Kamat, resigned from the crypto exchange. Binance representative said, “We can confirm that Mayur has stepped down from his role as product lead. We are grateful to him for helping guide Binance through some of our most explosive growth and we wish him the very best.” Kamat noted, “It is time for me to step down and transition product leadership to Binance’s next-gen leaders”. He added, “It is also a good time for me personally to take some time off after 20 years of non-stop product work”.
The Chief Strategy Officer, Patrick Hillman, who joined Binance in 2021 to shape the company’s long-term vision, exited in July 2023. The Senior Vice President for Compliance, Steven Christie and the General Counsel, Hon Ng, also departed from the exchange around the same time in July 2023. The most recent departure that followed a string of high-profile departures, highlighting a pattern of executive disarray amidst legal qualms, was Stéphanie Cabossioras, who vacated her General Manager position in Binance’s French division.
On September 28 2023, Binance urged its European users to convert their euros into Tether before the end of October 2023 after losing the support of its banking partner. Binance said, “PaySafe unilaterally decided to stop processing EUR deposits for Binance users. Users can no longer trade EUR spot trading, and open orders will be cancelled an hour later”. The exchange added, “PaySafe users are advised to take appropriate actions in advance”. The latest announcement, however, could suggest that the report urging users to convert their euros is unnecessary.
In May 2023, PaySafe pulled support transactions in British pounds following concerns raised by UK financial regulators over the partnership. The exchange’s liaison with regulatory compliance witnessed a new chapter in the United Kingdom. On October 16 2023, Binance suspended access to its exchange for new users based in the UK. This move was in adherence to the Financial Conduct Authority’s (FCA) fresh directives. Binance US also faced adversities across the Atlantic.
According to a press release on October 17th 2023, Binance US rescinded its offering of Federal Deposit Insurance following a consultation with the Federal Deposit Insurance Corporation (FDIC). Binance US told its customers that continuing trade on their platform will constitute an acceptance of their terms. Binance US emphasised that those who disagree with the changes can close their accounts, provided they are in good standing.
The exchange has yet to source fiat partnerships for its United Kingdom exchange, where British users are still unable to deposit GBP. Binance’s move to restore euro services by forging new alliances with fiat partners shows how committed the firm is to restoring its European customer base. Over the years, Binance has encountered numerous challenges and keeps looking for new ways to stay relevant in crypto.
