Binance: Tensions Rise in Europe After Premature Fiat Withdrawal Halt!

Binance, the giant cryptocurrency exchange platform, is facing disruptions with its payment partner, Paysafe, in Europe. Some European users are experiencing difficulties in making euro withdrawals due to early closures initiated by Paysafe.

End of SEPA services: European Binance users in distress

For European users of Binance, Paysafe has long been central to fiat transactions, especially through SEPA transfers. However, everything changed when Paysafe revealed its intention to end these services in June.

The collaboration was officially set to end on September 25th. However, well before the announced date, many users, including Ervin Ursic Kovac, faced a sudden interruption of these services.

Ervin testifies: “I sold ether for euros on September 12th, but I couldn’t withdraw the amount. To my surprise, a message indicated that my account had been prematurely closed.”

Around 0.085% of European Binance users with Paysafe accounts are affected by this “early closure.”

In a CoinDesk report dated September 20th, many customers expressed their dissatisfaction with losing access to fiat withdrawal services before the deadline, and, unfortunately, complaints persist even after this date. What is really happening, and how does Binance plan to overcome this challenge?

Divergence of Responsibilities

There is a noticeable tension between Binance and Paysafe regarding the responsibility for this unfortunate situation. The exchange claims not to have received sufficient notice from Paysafe, which argues that resolving the issues is Binance’s responsibility. These conflicting claims leave users in doubt.

Currently, Binance is actively searching for a replacement partner for SEPA transactions. Anticipating the end of its partnership with Paysafe, Binance offers its customers free conversion of their fiat balances into cryptocurrencies. They can also proceed to withdraw their fiat amounts.

This is not the first ordeal for Binance in Europe. Two years ago, regulatory issues led to the suspension of SEPA transfers.

Furthermore, Binance is under regulatory scrutiny. Due to concerns about the management of client funds, the platform had to exit several European countries, all in an effort to align with upcoming European regulation, MiCA.