Binance’s list of problems continues to grow, with the exchange facing heat on multiple fronts. Amidst growing concerns about its solvency and key executives suddenly leaving, the exchange has been hit by another blow: Its primary Euro service provider unexpectedly severing ties.
The sudden twist of events has triggered serious apprehensions about Binance, leaving European users understandably on edge, who now question whether there are deeper issues plaguing the exchange and, if so, what steps they should take next.
PaySafe Pulls Out from Binance
On Thursday, September 28, Binance dropped a bombshell announcement, warning that Paysafe Payment Solution Limited, its primary Euro service provider, abruptly halted processing EUR deposits and ultimately disrupted various services on the platform.
At press time, users cannot buy and sell cryptocurrencies with EUR balances or engage in EUR spot trading. Binance shared that it has temporarily suspended multiple services, including EUR/USDT and EUR/BUSD spot trading bots, Binance convert, and Binance Auto-Invest.
The exchange has notified users that it will cancel or discontinue all existing open orders on the services until it integrates a new payment channel to mitigate any potential issues.
While the exact reason behind PaySafe’s unexpected withdrawal remains in the air, users must act prudently and take measures to protect their assets.
Next Steps
Binance guided Paysafe users, suggesting two courses of action. Firstly, users can instantly convert their EUR balances in their accounts to USDT before October 31. Alternatively, they can continue withdrawing their EUR balances from their exchange accounts to their bank accounts. However, given the panic and fear surrounding the matter, users have reported facing issues with EUR withdrawals since September 21.
In its official announcement, Binance assured users’ funds are secure and other crypto-related services remain unaffected. The platform shared that it’s working to integrate new fiat channels onto its platform as soon as possible, and users will soon be able to deposit and withdraw Euros.
Binance Users Reacts
The community expressed deep concern regarding the abrupt suspension of the Euro services by PaySafe. Many users shared concerns about their balances and questioned the rationale behind the payment provider’s decision to discontinue its services, especially when it has a history of serving high-risk businesses, including those in the cryptocurrency sector.
Some experts suggest that Paysafe might have reevaluated its risk management policy, particularly in light of Binance’s recent regulatory challenges. This reassessment could have led Paysafe to conclude that continuing its association with Binance poses potential anti-money laundering (AML) risks.
Other users speculated this is a coordinated ‘debanking attack’ on the exchange and the European crypto landscape.
While PaySafe’s motives remain unclear, what’s more concerning is that Changpeng ‘CZ’ Zhao, who often addresses concerning news as such with his signature ‘4’ tweet, has yet to comment on the issue.
On the Flipside
Binance is still facing regulatory scrutiny and potential criminal charges of $428 million for alleged money laundering.
The exchange has recorded the exit of up to 10 key executives in 2023.
Despite the regulatory challenges, Binance continues to be one of the largest crypto platforms in Europe.
Why This Matters
Binance boasts millions of European users. The sudden abruption of services could affect investor confidence in the platform and fuel concerns surrounding the exchange.
Source : DailyCoin by Insha Zia / September 28, 2023