More regulatory woes hit Binance exchange in Europe

Changpeng Zhao

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TL;DR Breakdown

  • Binance halts bank transfer for euro
  • Binance and continuous crackdown it faces

Binance exchange has been forced to face more horrors in Europe after its recent debacle with authorities in the United Kingdom.

Most recently, the largest and number one crypto exchange (Binance exchange), owing to regulatory constraints in Europe, has been forced to halt bank transfers denominated in euros temporarily.

Binance exchange announced in an email sent to affected customers in Europe on Tuesday. Euro deposits via the Single Europe Payments Area, or SEPA, specifically has been put on hold indefinitely due to circumstances beyond the exchange’s control, it said in the email.

“Due to events beyond our control, we are temporarily suspending EUR deposits via SEPA Bank Transfers from 8 am UTC on July 7, 2021.

However, euro deposits through credit cards and debit cards accounts are still functional. Withdrawals are also still possible through Sepa and Faster Payments, according to Binance’s website. The European Payments Council, which runs Sepa, could not immediately be reached for comment.

Binance exchange and the UK

Binance exchange, which typically accesses Sepa through payment intermediaries, described the move as “temporary.” But the restriction marks the latest prohibition on customers moving funds onto the exchange from conventional banks and other types of financial accounts.

The exchange firm’s news of halting direct euro deposit is coming a day after British financial giant Barclays announced it would no longer facilitate customer payments to Binance.

Previously also, financial regulators warned customers that the exchange was operating in the United Kingdom without proper licensing.

Binance facing crackdown all over

Binance has been an enduring crackdown in several countries even though it is the number on the crypto exchange, and also it has processed more than $5tn in trades this year.

Beyond the UK, Japan recently warned the exchange that it was doing unauthorized crypto business with Japanese citizens. Thailand has launched a criminal investigation into the company also.

Cayman Islands has also said the firm is not licensed to do crypto business in the jurisdiction.

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Muhaimin Olowoporoku

Muhaimin loves writing on crypto news aside from being a crypto enthusiast. He has a knack for analysing issues and updating people on what's happening around the globe. He believes that blockchain and cryptocurrency are the most useful systems of mutual trust ever devised.

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