Some European Union users of Binance have experienced fiat withdrawal restrictions due to the discontinuation of support by the crypto exchange’s local payment provider, Paysafe, according to reports from Coindesk.
Paysafe Concludes Support for Binance EU Users
Paysafe, a prominent payments processing company, has formally terminated its partnership with Binance, and this support will officially cease on September 25. In the run-up to this date, Paysafe has already blocked fiat payouts for several Binance users.
A Binance user in the EU received a notification from Paysafe, stating, “As a high-frequency Paysafe service user, Paysafe closed your account early to speed up this process. Any remaining EUR/GBP in your account can be withdrawn once the review is completed.”
Binance confirmed to Coindesk that Paysafe initiated an “early closure review” affecting only a “very small portion” of Binance users with Paysafe accounts, amounting to just 0.085% of users. However, the exact rationale behind this decision remains undisclosed.
Binance assured affected users that they are actively working to expedite the return of funds from Paysafe and will promptly notify users through the Binance app and email as soon as Paysafe completes its review.
The Termination of a Partnership
Binance had enlisted the services of Paysafe in May of the previous year to handle withdrawals and deposits involving the euro and the British pound. However, Paysafe ceased supporting GBP payments in May and subsequently terminated its agreement with the crypto exchange the following month, citing a “strategic review” as the basis for its decision.
While Paysafe did not provide explicit reasons for its actions, these developments coincided with Binance and its CEO, Changpeng Zhao (“CZ”), facing legal actions from two major US regulators. Binance is currently under regulatory scrutiny in multiple jurisdictions, including Australia and the European Union.
Responding to inquiries from Coindesk, Paysafe stated that it could not speculate on the reasons behind a particular customer’s inability to make transactions, emphasizing that Binance holds the customer relationship, not Paysafe. Paysafe also stressed that its services for Binance customers are fully operational, in accordance with contractual and regulatory obligations.
Binance’s US branch also encountered payment-related issues after two of its banking partners folded. Despite the challenges, Binance.US transitioned into a crypto-only exchange following the SEC’s lawsuit. Additionally, the exchange recently teamed up with MoonPay to provide on-ramp services.
Meanwhile, Binance and its US subsidiary have witnessed a series of high-level departures in their management teams, and both entities have implemented staff reductions.
