Paysafe Payment Solutions Limited (Paysafe) has announced that they will stop offering services to Binance users starting September 25th, 2023. This news comes three months after BinanceUS warned its banking partners to stop providing services. A notification was sent to Binance users informing them of the change.
The company stated that the decision to stop providing services was due to complex UK regulations. As a result, GBP withdrawals and deposits were suspended for all users on May 22. This was done in order to introduce stricter regulation of cryptocurrency lending and trading.
Paysafe had originally promised to continue service in other parts of Europe, but after discontinuing services in the UK, they have decided to stop providing services to Binance users globally. Binance has stated that they are looking for another payment partner to fill the void, but this could be difficult due to current regulatory pressures.
Binance and its subsidiaries have been facing heightened scrutiny in recent months. Binance Austria GmbH chose to rescind their license application in Austria, and the US Securities and Exchange Commission has sued Binance’s US subsidiary and its CEO Changpeng Zhao for violating securities laws.
It is yet to be seen what the future holds for Binance and its banking partners, but one thing is certain: the cryptocurrency industry is undergoing a period of change.