Binance Users Advised to Convert Euro Balances to Tether Following Loss of Banking Partner

In response to its banking partner Paysafe’s recent withdrawal, Binance, the cryptocurrency exchange, has advised users to convert their Euro balances into USDT. This recommendation follows Paysafe’s decision to halt Euro deposit processing for Binance users on September 28, 2023. Consequently, deposits and Euro spot trading activities were suspended by 4:00 a.m. UTC on the same day.

Binance has reassured its users that it is actively seeking to integrate new fiat channels into the platform. For those who prefer not to convert their Euro balances to USDT, direct withdrawals to bank accounts remain available.

The partnership between Binance and Paysafe has faced challenges in recent months. Earlier this year, Paysafe ceased processing British Pound transactions for Binance in May, citing difficulties related to the regulatory environment in the U.K. Additionally, in June, Paysafe announced its cooperation with Binance to finalize their integrated wallet services across the European Economic Area. However, Binance contests Paysafe’s assertion that their withdrawal of services was abrupt.

Binance’s banking issues are not restricted to Europe. In February, the exchange temporarily halted US Dollar-denominated fiat transfers after its banking partner stopped processing crypto transactions below $100,000. Additionally, Binance US, a subsidiary of the exchange, shifted to a crypto-only model after similar disruptions from its banking partners.

On September 27, Binance also sold its Russian operation to a new crypto exchange, CommEX, due to incompatibilities with its compliance strategy in that region.

While Binance works to establish a new fiat partner for Euro services and has temporarily halted Euro spot trading, it is unclear when support for Euro transactions will be restored. Users have been given until October 31 to convert their Euro balances to USDT to help them navigate this interim period. Despite the suspension of Euro trading activities, users can still withdraw their Euro balances to their bank accounts.

This development adds to Binance’s ongoing regulatory challenges in Europe. Over the summer, the exchange exited the Netherlands due to a lack of regulatory approval, sought to deregister its local entity in Cyprus, and faced an investigation in France for alleged money laundering. However, Binance recently resumed its exchange services in Belgium after being instructed to cease operations by the country’s regulator three months prior.

This article was generated with the support of AI and reviewed by an editor.