Binance Users in the EU Face Withdrawal Restrictions
Binance, the leading cryptocurrency exchange, is experiencing issues with its European payment partner, Paysafe. Some users in the European Union (EU) have been blocked from withdrawing Euros from the platform. Although Paysafe’s support services are set to end in September 2023, they have already denied access to funds for certain Binance users.
Withdrawal Access Denied Ahead of Deadline
Paysafe has blocked withdrawal access for a small percentage of Binance EU users until their accounts are reviewed. Currently, approximately 0.085% of Binance EU users cannot withdraw their Euros. One affected user, Ervin Ursic Kovac, reported that his account was closed without warning after attempting to withdraw currency.
Binance Responds to Paysafe’s Actions
Binance was unhappy with Paysafe’s sudden blocking of user funds and urged patience from its users. The exchange is actively working to expedite the return of funds and will notify users through its app once Paysafe completes the review process.
Paysafe Ends Partnership with Binance
In May 2023, Paysafe decided to terminate its support and partnership with Binance due to regulatory concerns. They initially discontinued support for new UK customers and later informed Binance EU customers that they would no longer receive their services. This led Binance to suspend Single Euro Payments Area (SEPA) transfers temporarily.
Lawsuits and Regulatory Compliance Challenges
Paysafe’s termination of its relationship with Binance coincided with several lawsuits filed against Binance and its owner, Changpeng CZ Zhao. The US Securities and Exchange Commission (SEC) accused Binance of operating an unregistered business and misleading investors, while the US Commodity Futures Trading Commission (CFTC) filed a lawsuit for alleged evasion of US law. Binance has also faced challenges complying with the EU’s upcoming regulatory rules.
Hot Take: Binance Faces Withdrawal Issues in the EU
Binance, the world’s leading cryptocurrency exchange, is dealing with withdrawal restrictions for its European users. Paysafe, their payment partner, has blocked access to funds for certain Binance EU users ahead of their planned termination of support. This unexpected move has caused frustration among affected users, but Binance is actively working to resolve the issue and return funds as soon as possible. Paysafe’s decision to end their partnership with Binance follows regulatory concerns and legal challenges faced by the exchange. Binance’s compliance with upcoming EU regulations further adds to their current challenges in the European market.
By
By
By
By