Following the termination of its partnership with Paysafe, Binance has successfully reinstated its Euro services. Yesterday, Binance announced it has collaborated with new regulated partners to enable Euro deposits and withdrawals, a strategic response to the regulatory pressures and the subsequent loss of banking relationships in the European Union.
September marked the end of Binance’s association with Paysafe, its primary Euro banking partner, prompting the search for these new partnerships. In a statement, Binance mentioned,
“We have aligned with a series of new regulated and authorized fiat partners. Users are currently transitioning to these enhanced services.”
However, the identities of these new associates remain undisclosed.
The services from these collaborations include EUR transactions through Open Banking and SEPA/SEPA Instant. Furthermore, users can engage in crypto trades with bank cards and maintain fiat balances. For context, “SEPA,” the Single Euro Payments Area, facilitates cashless Euro payments across 36 European Union countries.
Binance emphasized the global importance of streamlining the conversion process between fiat and crypto. “Offering fiat services is essential for increasing the adoption of digital assets worldwide,” they articulated.
This strategic move comes after a period of challenges for Binance. Earlier this year, the German financial regulator, BaFin, declined their custody license application. This led Binance to advise its European users in late September to switch their euro holdings into Tether (USDT) before October, a step now viewed as redundant due to the newly formed partnerships.
However, not all has been smooth. Post-announcement, a few users encountered issues with euro deposits, and queries arose about potential fiat collaborations in the UK. Currently, British Binance users face limitations, as the search for UK fiat partners is ongoing.
Binance’s journey to re-establishing its European services illustrates the broader regulatory challenges crypto exchanges encounter, particularly in the EU. The end of Binance’s relationship with Paysafe serves as a testament to the intricate and evolving regulatory environment these digital exchanges operate within.