Binance’s EUR to USDT Push
Crypto exchange Binance has found itself amidst yet another debanking issue in Europe. To combat this, it is advising Paysafe users to make a swift switch – converting their euros into the stablecoin, Tether, all by the end of this coming October.
The Paysafe Fallout
On the heels of Paysafe’s recent decision, as of September 28th, Binance has urgently communicated to its European user base the need to transition their EUR balances to USDT. The crux of this situation is Paysafe’s announcement to discontinue processing EUR deposits specifically for Binance clientele.
Yet, for those concerned about their existing EUR reserves on Binance, there’s some solace. The exchange mentioned that withdrawals in EUR to personal bank accounts remain operational.
To offer clarity, Binance stated, “Paysafe users are advised to take appropriate actions in advance.” This coincides with the new restriction, effective from Sept. 28 at 4:00 am UTC, disabling EUR spot trading pairs. As a follow-up measure, open orders will be called off an hour post this restriction.
Binance Convert Impacted
Users familiar with ‘Binance Convert’, a platform operating akin to a token swap, should note the incoming restriction on EUR-based transactions.
The Underlying Paysafe Situation
Paysafe’s relationship with Binance took a hit earlier on Sept. 25 when it stopped euro deposits. This company was a linchpin for Binance’s European operations, offering seamless fiat deposits and withdrawals. This included the SEPA – a significant bank transfer mechanism within the EU.
As a reassurance to its vast user base, Binance has stated, “We are working to integrate new fiat channels onto Binance soon.”
A String of Binance Hiccups in the West
The current predicament with Paysafe is only one of the myriad challenges Binance has been grappling with, especially in Western regions. A stark example was when Paysafe ceased its GBP transactions back in May, post the UK financial regulators voicing their reservations.
Moreover, Binance’s decision to withdraw from the Netherlands was another significant blow. Barely a week had passed when Belgium too stepped in, requesting Binance to pause its offerings. However, in a twist, Binance resumed new registrations for its Belgian users as of Sept. 26.
