Recently, some Binance users in the SEPA region (Single Euro Payments Area) revealed that they received emails regarding the closure of their accounts on the Binance exchange. The email stated that “accounts using Paysafe services frequently will be closed early to expedite the refund process and ensure everything is in order.”
Notably, this preemptive account closure comes ahead of Binance’s discontinuation of support for countries within the SEPA region on September 25, 2023, due to disruptions with their EUR Fiat payment partner, Paysafe.
Shortly after, a Binance spokesperson confirmed, “Sending and withdrawing EUR via the SEPA system will continue until September 25 as initially announced. However, some users may be required to provide additional information as part of periodic compliance checks, which may lead to the early closure of their accounts. We apologize for any inconvenience. Currently, we are setting up alternative options for users before the end of the SEPA service.”
These recent developments at Binance signal a period of turmoil for the exchange in Europe. The withdrawal from the registration process in Germany is the latest setback in a series of challenges as the exchange attempts to establish itself in the region.
Within just a month, Binance has withdrawn from five European countries, including Germany, the Netherlands, Austria, Cyprus, and the United Kingdom. All of these exits stem from difficulties in securing the necessary regulatory approvals.
Binance’s legal hurdles are not confined to Europe. The exchange is also facing scrutiny from regulatory bodies in the United States. Both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have filed lawsuits against Binance, its subsidiaries, and CEO Changpeng Zhao for multiple alleged regulatory violations.
It’s worth noting that the Single Euro Payments Area (SEPA) is an integrated payment initiative by the European Union aimed at simplifying bank transfers in Euro.