- Binance advises European users with euro balances to convert them into Tether (USDT) following the discontinuation of support by Paysafe.
- Paysafe’s decision to stop processing EUR deposits for Binance users has disrupted EUR spot trading pairs on the platform.
In the latest development surrounding Binance’s European operations, the cryptocurrency exchange has issued a call to action for its regional users. Binance is urging European users with euro balances to convert their holdings into Tether (USDT) before the end of October. This advisory comes in the wake of Binance losing support from its banking partner, Paysafe.
Challenges with Paysafe and Euro Transactions
On September 28, Binance notified its European user base, particularly those using Paysafe, to transition their EUR balances within their Binance accounts to USDT by October 31. The reason cited was Paysafe’s independent decision to cease processing EUR deposits for Binance users.
While this development is undoubtedly an inconvenience, Binance has assured its users that they can still withdraw their EUR balances from their Binance accounts to their respective bank accounts.
The announcement stressed the importance of Paysafe users taking appropriate actions ahead of the deadline.
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Disruption in EUR Spot Trading Pairs and Binance Convert
Effective September 28 at 4:00 a.m. UTC, Paysafe users will no longer have access to EUR spot trading pairs on Binance. Additionally, open orders within these pairs will be automatically cancelled one hour later. Furthermore, the utility of Binance Convert, which operates as a token swap service, will also be curtailed for EUR transactions.
It’s worth noting that Paysafe had already suspended euro deposits on September 25. Previously, Paysafe had played a pivotal role in facilitating fiat deposits and withdrawals for Binance users in Europe, including supporting bank transfers within the European Union’s Single Euro Payments Area (SEPA).
The official statement from Binance held a glimmer of hope, with the exchange expressing its commitment to integrating new fiat channels onto its platform soon.
Binance Ongoing Regulatory Challenges
This development adds to a series of regulatory and debunking challenges that Binance has encountered in Western markets. Paysafe’s decision to cease support for transactions in British pounds in May was a precursor to this recent announcement, driven by concerns raised by UK financial regulators regarding the partnership.
In June, Binance announced its withdrawal from the Netherlands, and within a week, Belgian authorities ordered the exchange to halt its services in the country. However, as of September 26, it was reported that new registrations from Belgian residents had been reopened.