The world’s largest crypto exchange Binance currently lacks a banking partner in the euro area, and Paysafe has terminated its cooperation. Binance is therefore calling on customers to exchange euro balances for the stablecoin Tether (USDT). The situation is explosive.
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Binance is in an unpleasant situation in Europe of having to significantly restrict its euro-based services
As previously announced, the previous banking partner Paysafe discontinued its services for Binance on September 25, making deposits and withdrawals in euros via SEPA bank transfer impossible for the time being. But apparently, the consequences of Paysafe’s withdrawal are harsher than anticipated, as an official announcement makes clear.
That is because Binance customers are strongly advised to exchange any balances in euros into the stablecoin Tether (USDT) by the end of October at the latest. Tether is pegged 1:1 to the U.S. dollar and is the world’s leading stablecoin with a market capitalization of just over $80 billion.
Binance did not provide any details on why euro balances are now suddenly undesirable. But it is clear from the announcement that customers who used Paysafe will now have to reckon with noticeable restrictions. For example, they are now said to be excluded from Binance’s Spot Market and Auto-Invest programs, as well as partially from Convert.
Binance apologizes for the “inconvenience” and writes that they are working on integrating new channels for Fiat. Binance originally promised to present a new cooperation partner as a successor to Paysafe as early as September 25th. This did not materialize.
It is known that Binance has problems with regulators in several European countries, including Germany. But the fact that support for crypto trading on a euro basis suddenly shrinks drastically was not foreseeable. Apparently, the background cooperation with Paysafe was deeper than anticipated. Meanwhile, Binance CEO Changpeng Zhao assures via X (formerly Twitter) a solution to the vacancy soon.
Conclusion: Binance with euro turbulence – customers should take action
The rift between Paysafe and Binance has already had consequences for individual euro customers in recent weeks, but now the situation has been exacerbated. Exchanging euros for Tether (USDT) – as recommended by Binance – is certainly not a dream solution from a European perspective to secure one’s balances.
However, you can always store Tether on a hardware wallet like Ledger and have full control to transfer funds to crypto exchanges other than Binance. Competitors like Coinbase, eToro or Bitpanda still offer euro service and SEPA bank transfers.
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