Binance customers in the European Union (EU) are experiencing difficulties with withdrawing euros from the cryptocurrency exchange due to an upcoming change in its regional payments provider. Some users in the region have been denied access to Paysafe, Binance’s European payments partner, ahead of the September 25 deadline when the payments company is set to end support for the exchange’s customers.
One user named Ervin Ursic reported that he had sent some ether (ETH) to his account on September 12 and sold it for euros, but was unable to withdraw the funds. Instead, he received a pop-up message stating that his account had been closed early without prior warning. The message, titled “Paysafe Notification,” informed him that his account had been closed early to expedite a review process. It also mentioned that any remaining EUR/GBP in his account could be withdrawn once the review was completed.
A spokesperson from Binance confirmed that Paysafe had undergone an earlier closure review for a small portion of Binance users (0.085%) who had Paysafe accounts in Europe. As a result, withdrawals for affected users would be delayed. However, once Paysafe completed the review, affected users should be able to withdraw their funds via bank transfer. Binance has also offered VIP upgrade vouchers to these affected users as a gesture of recognition for the inconvenience caused by Paysafe’s actions.
In response to these issues, Paysafe released a statement clarifying that it could not comment on why a particular customer was unable to make transactions, as the relationship with the customer was held by Binance, not Paysafe. The statement emphasized that Paysafe’s services for Binance customers were fully operational and compliant with contractual and regulatory obligations.
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Paysafe had previously facilitated fiat deposits and withdrawals for Binance users in Europe, including bank transfers within the EU’s Single Euro Payments Area (SEPA). However, in June, the payments provider announced its decision to wind down support for its embedded wallet service for Binance’s EU customers following a strategic review. This decision came after Paysafe had already withdrawn support for the British pound for new Binance users in May.
Binance has been facing increased regulatory scrutiny globally since the market turbulence of the previous year. In June, the Securities and Exchange Commission (SEC) sued Binance and its CEO for their “blatant disregard of the federal securities laws,” bringing 13 charges against the platform, including operating an unregistered exchange. The SEC accused Binance of offering unregistered securities, such as its BNB token and BUSD stablecoin, to the general public.
Furthermore, French authorities conducted a visit to Binance’s office in France last month, investigating allegations of illegal provision of digital-asset services and aggravated money laundering. The exchange also faced regulatory challenges in several European countries, including Belgium and Austria, as it prepared to comply with the EU’s forthcoming Markets in Crypto Assets (MiCA) regulations.
This increased regulatory pressure has led to a decline in Binance’s market share, with a 25% decrease between February and June. Despite these challenges, Binance continues to operate in various regions, such as Nigeria, where it received an order to cease operations from the country’s Securities and Exchange Commission (SEC).
In conclusion, some Binance customers in the EU are currently unable to withdraw euros due to an early closure of Paysafe’s services for the exchange. This change comes amidst Binance’s ongoing regulatory challenges globally. The exchange has faced lawsuits, investigations, and orders to cease operations in various countries, leading to a decline in its market share. However, Binance remains operational and is working to address these issues with its payments providers and regulatory compliance efforts.
