Binance, the world’s biggest cryptocurrency exchange, is now suspending SEPA bank deposits, which are used in the European Union’s (EU) payment network.
According to the Financial Times, users of the European crypto exchange were informed that SEPA deposits are no longer possible.
SEPA is a single European market for euro-denominated payments. For large deposits, SEPA is the preferred transfer method for crypto traders. This means that Binance users in the SEPA-using countries (now 36) will not be able to deposit money in the system.
Binance’s Euro Problems
In the wake of the recent announcement that Barclays would be blocking clients from transferring money to Binance, the exchange has begun to reel.
Additionally, the UK’s Financial Conduct Authority (FCA) issued a consumer warning in the hopes of helping to “protect” UK investors from investing on Binance.
The article reports that customers will no longer be able to deposit money via the SEPA (or Eurozone) programs. The company made the decision because “unforeseen circumstances beyond our control” necessitated the relocation, the FT said.
The EU’s initiative to unify Euro payments throughout Europe would enable customers to transfer euros to at least 34 nations, according to the study. Typically, Binance has access to SEPA via using payment intermediaries.
Binance’s Compliance Woes Worldwide
A series of crackdowns on the platform has occurred worldwide lately.
Thailand’s financial authority (or securities regulator) filed a criminal complaint against the exchange for carrying out an unregulated digital asset business without a license, and Britain’s financial regulator (or the Financial Conduct Authority) issued a similar prohibition to the exchange a few days prior.
Binance is operating unlawfully in Japan, according to the country’s authority. Germany’s securities regulator warned in April that it may face punishment for issuing securities tokens that are linked to equities.
In addition, the company called on Ontario-based clients to withdraw their money before the end of the year, provided they cancel any open positions first.
The Cayman Islands Monetary Authority (CIMA) announced that Binance will be banned from operating as a crypto exchange in or from the Cayman Islands.
In contrast, however, although Binance has previously focused on the significance of its compliance standards, it maintains that it does not have a physical presence.
So far, this summer seems to be a key point in time for Binance’s operation. Binance’s CEO, Changpeng Zhao, noted in a blog post that Binance will beef up compliance efforts in order to maximize value for users.