Checkout.com Terminates Contract with Binance, Citing Money Laundering Concerns
According to a report by Forbes, Checkout.com, a London-based credit card processing company, has terminated its contract with Binance, the largest crypto exchange in the world. The decision was made due to concerns over money laundering and compliance issues. The termination became effective on August 17.
Key Points:
– Checkout.com sent a series of letters to Binance, citing regulatory actions and orders in relevant jurisdictions, as well as inquiries from partners.
– The second letter highlighted additional concerns regarding Binance’s anti-money laundering, sanctions, and compliance controls.
– Binance disagreed with the grounds for termination and is considering legal action.
– This move is a setback for Binance, as Checkout.com was previously its largest customer.
– Checkout.com’s decision has significant implications for both companies in the evolving landscape of crypto payments.
Hot Take:
The termination of the contract between Checkout.com and Binance is a significant blow to Binance’s reputation and market position. It further adds to the challenges the exchange faces in rebuilding trust amidst ongoing regulatory scrutiny. For Checkout.com, severing ties with a major client presents its own set of consequences in an industry where compliance and security are increasingly crucial. Both companies must navigate these developments as the crypto industry continues to evolve.
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