An X post by the Binance customer service department revealed that the world’s largest crypto exchange by daily trading volume will suspend the Euro withdrawals and deposits made through the Single Euro Payments Area (SEPA). The August 20 tweet stated that the Binance users could not withdraw fiat currencies in Europe due to technical issues facing SEPA.
Even though the Binance team did not specify when it will resolve the matter, the crypto exchange is exploring ways to restore the operation of SEPA. The Binance team admitted that its payment providers Paysafe cannot support SEPA transfers. In the report, the Binance team assures the customers to resolve the issue within the shortest time possible.
Binance Fails to Overcome SEPA Technical Issues
Lately, the Binance users complained about the termination of the Paysafe partnership created inconveniences among the users. In a separate report, one of the Binance users in Europe stated that he had purchased a “large amount of EUR through the Binance platform.” After making the purchase, the affected customer could not transfer the Euros to the respective bank account or trade them on the crypto exchange.
Responding to the complaint, the Binance support team told the troubled customer it could not address the matter at the moment. The controversial crypto exchange requested the users to exercise patience as Binance sought for another payment provider.
The EUR limits imposed by Binance aim to prevent scams that could allow the user to access the platform and block them after completing the transactions.
A few weeks ago, the Binance team had hinted the crypto community plans to cut ties with its Euro banking partner Paysafe. In the announcement, the crypto exchange stated that from September 25, the Paysafe team will stop supporting Binance transactions. The report demonstrated that Binance plans to partner with a new payment provider to facilitate Euro deposits and withdrawals.
However, the Binance team plans to make changes on the platform with the new payment provider. The expected upgrades will require the Binance users to provide their banking information in the EUR deposits and withdrawals account. Also, the Binance customers must accept the terms and conditions for SEPA transactions.
Binance Faces Regulatory Actions
In an interview with Cointelegraph, the Binance spokesperson stated that before September 25, when the crypto exchange will split ways with its payment provider, the users will be regularly requested to update their data. Before September, the Binance team plans to conduct a compliance check that could lead to the closure of some accounts.
In his final remarks, the spokesperson confirmed that Binance will have to develop alternative options before the end of SEPA service. The spokesperson added that the exit of Binance in several European Union jurisdictions is unrelated to the suspension of EUR deposit and withdrawal services.
Earlier in May, Binance indefinitely suspended withdrawals after experiencing heavy transaction backlog. Despite the technical challenges Binance failed to overcome, the crypto exchange has faced harsh regulatory actions in various jurisdictions.
In June, Binance exited the Netherlands market after failing to acquire the Dutch virtual assets service provider permit. Day after the Netherlands departure, the Belgium authority instructed Binance to suspend its services.
Before this, the Brazilian regulators had ordered Binance to appear before the Parliamentary committees after being alleged to be a pyramid scheme.