Paysafe Payment Solutions, the European banking partner of Binance, announced on Thursday that it will no longer offer its embedded wallet solution to the U.S. cryptocurrency exchange across the European Economic Area (EEA) starting from September 25.
In an email to Reuters, Paysafe stated that they are working with Binance to implement a fair and orderly process to terminate this service over the next few months.
Binance confirmed the news and stated that it would be changing its banking provider for euro deposits and withdrawals through the Single Euro Payments Area (SEPA), but no specific details about the new partner were disclosed.
A spokesperson from Binance mentioned that more information will be provided at a later time.
Typically, Binance accesses SEPA through payment intermediaries.
However, the spokesperson assured that during this transition, all methods of depositing and withdrawing other fiat currencies, as well as buying and selling cryptocurrencies on Binance.com, will remain unaffected.
Paysafe’s decision to end its wallet solution comes at a time when Binance is under scrutiny from regulators who are aiming to crack down on money laundering.
In recent developments, Binance and its U.S. affiliate reached an agreement with the Securities and Exchange Commission (SEC) to ensure that customer assets in the United States remain within the country until the resolution of a comprehensive lawsuit filed by the regulatory agency.
Last year, Binance partnered with Paysafe to enable its users to deposit sterling via Faster Payments, a network responsible for overseeing payments and bank account transfers in Britain.
In summary, Paysafe Payment Solutions will no longer offer its embedded wallet solution to Binance across the European Economic Area.
Binance will seek a new banking provider for euro transactions through SEPA.
However, the change will not impact other deposit and withdrawal methods or the trading of cryptocurrencies on Binance.com.
Paysafe’s decision coincides with increased regulatory scrutiny faced by Binance, and the company has also recently resolved an agreement with the SEC regarding customer assets in the United States.
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