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Binance Urges European Users to Convert Euros to Digital Dollars Amidst Banking Challenges

Published September 28, 2023 10:20 AM
Teuta Franjkovic
Published September 28, 2023 10:20 AM

Key Takeaways

  • Binance suspended its Paysafe-powered EUR operations, urging users to convert euros to USDT before October 31.
  • Paysafe unilaterally decided to stop handling euro deposits for Binance users
  • Binance guarantees that euro withdrawals will be unaffected while exploring additional fiat payment methods in Europe.
  • Binance has recently exited the Russian market and reopened in Belgium.

In May, Binance stopped supporting GBP payments and as of right now, Paysafe-powered euro (EUR) operations are also suspended.

Although the platform urged  to its users that they start converting their euros to USDT, the news of the exchange’s suspension of its collaboration with the payment firm in Europe has been known for several months.

Paysafe “unilaterally decided” to stop handling euro deposits for the exchange’s users, according to a statement  issued by Binance. As a result, the trading site encourages traders to transfer their euros to Tethers, one of the most well-liked stablecoins, and recommends them to take specific preventative precautions.

EUR Services Disrupted After Paysafe Pulls the Plug

The exchange recommends customers complete the conversion before October 31. Binance stated, “Some services may briefly pause because of Paysafe’s sudden and unexplained decision. We apologize for any inconvenience this may cause.”

The collaboration between Paysafe and Binance began in March of the previous year, enabling exchange users to deposit and withdraw funds in both euros and pounds, and trade with EUR and GBP pricing. However, Paysafe ceased providing payment processing services in pounds in May 2023, citing regulatory uncertainty in the UK.

Users can no longer trade EUR spot trading pairs or buy and sell cryptocurrencies in euros as of September 28.

Additionally, since the start of the week, the majority of traders are unable to deposit euros via Paysafe. However, Binance guarantees that withdrawals of euros to bank accounts will continue uninterrupted.

Users may still transfer their EUR amounts from their Binance accounts to their bank accounts in the meanwhile, according to Binance. Additionally, the exchange guarantees that it is attempting to incorporate additional fiat payment methods in Europe in order to “provide a seamless crypto experience for all users.”

Exiting Russia, Binance Re-Opens in Belgium

Binance has recently experienced a lot of activity. The exchange just made the announcement that it is surrendering its operations to the recently founded exchange CommEX and altogether leaving Russia. It’s interesting to note that the exchange in question began operating formally the day before this information became public.

The exchange also declared this week that it is starting up again in Belgium. Although the local regulator had previously ordered to suspend them, it has now chosen to relocate its Belgian clients to Poland. Laws governing the European Union permit the exchange to administer client accounts and offer services through a registered firm in a different nation.

Continuous Global Banking Problems

As financial regulators tighten their oversight of Binance’s operations, the company has struggled more and more to find new banking partners globally.

Following the failure of its banking partner, the defunct Signature Bank, the exchange momentarily halted executing fiat transfers denominated in US Dollars in February.

After its banking partners abruptly stopped providing their services to the platform, Binance US, the company’s U.S. affiliate, converted to a cryptocurrency-only exchange.

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