Binance announced that it will suspend euro bank deposits from one of Europe’s major payment networks, the most recent sign of how the crypto firm is losing key connections with the mainstream financial system following a regulatory repression.
In an email to users on Tuesday, the exchange said that as of 8:00 a.m. UTC on Wednesday, customers will no longer be able to deposit funds through the systems of the Single Euro Payments Area, or Sepa. His move was due to “events beyond our control,” the exchange said.
The network, an EU project that aims to harmonize euro payments across the region, allows consumers to send euros to three dozen countries.
Binance, which typically accesses Sepa through payment intermediaries, called the move “temporary.” But the restriction marks the latest ban on customers transferring funds to the exchange from conventional banks and other types of financial accounts. Deposits through the UK Faster Payments network have also been deactivated over the past week. Barclays, one of the region’s largest lenders, said on Monday it was banning UK customers from buying cryptocurrencies on the stock exchange using bank cards.
Withdrawals are still possible through Sepa and Faster Payments, according to Binance’s website. The European Payments Council, which runs Sepa, could not immediately be reached for comment.
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Clear Junction, a payment processor that provided Binance with access to Faster Payments and Sepa, did not immediately respond to a request for comment.
Regulators around the world have cracked down on the sprawling company, which has processed more than $ 5 billion in transactions this year and says it has no official seat.
The UK’s financial watchdog said last month that Binance was not licensed to run a crypto asset transaction in the country, while Japan recently warned the exchange that it was carrying out crypto activity. not allowed with Japanese citizens. Thailand has opened a criminal investigation into the company, while the Cayman Islands, where Binance is incorporated, said the group was not licensed to conduct crypto business in the jurisdiction.
Binance customers have been able to bypass the barriers to depositing traditional currencies by transferring their digital coins from another crypto exchange or cryptocurrency wallet.
Binance added that users can still buy coins and assets on their credit and debit cards. He “was working hard to find a solution with our partners,” he added.
The exchange also allows customers to transfer payments in euros through a network called Sofort, which is widely used in Germany, Austria and Switzerland.
Binance confirmed the email’s authenticity to customers, but declined to comment on its relationship with payment partners.