Binance Customers in EU Blocked from Withdrawing Euros as Payments Provider Cuts Support

Binance customers in the EU are unable to withdraw euros as Paysafe, the exchange's payments partner, plans to end support on September 25. Some users have already been locked out of their accounts early, causing inconvenience and financial losses.

Posted 7 months ago in Exchanges

A person trying to withdraw money from an ATM but getting an error message on the screen

Binance customers in the European Union are facing difficulties in withdrawing euros from the platform due to impending changes in the regional payments provider. Paysafe, Binance's European payments partner, is set to end support for the exchange's customers on September 25. However, several users in the region have already been locked out of the service before the deadline.

One affected user reported that despite successfully depositing and selling ether (ETH) for euros on September 12, they were unable to withdraw the currency. Instead, they received a pop-up message stating that their account had been closed early without any prior warning.

Binance acknowledged that Paysafe had subjected a small portion of users to an earlier closure review. Paysafe, on the other hand, stated that Binance holds the relationship with the affected customer, and it cannot comment on why the account was unable to make transactions. The payments provider clarified that its services for Binance customers are fully operational as per contractual and regulatory obligations.

Paysafe facilitated fiat deposits and withdrawals for Binance users in Europe, including via bank transfer in the Single Euro Payments Area (SEPA). Earlier this year, Paysafe announced that it would no longer offer its embedded wallet to Binance's EU customers after a strategic review of the partnership. The limited closure of accounts by Paysafe has affected approximately 0.085% of Binance users with Paysafe accounts in Europe.

According to a Binance spokesperson, affected users will have their accounts reviewed, and withdrawals will be delayed until the review process is complete. Binance expressed disappointment over the short notice from Paysafe and assured users that they are working to expedite the return of funds. VIP upgrade vouchers have been offered to affected users, and Binance will notify them through the app and email once reviews are finalized.

As regulatory scrutiny intensifies around the world, Binance has been facing challenges in various countries, including Belgium and Austria, leading to its retreat from these markets. The exchange is preparing to comply with the EU's Markets in Crypto Assets (MiCA) rules, which come into effect in 2022.

Last updated 9/19/2023, 1:32:02 PM


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