European Users Urged to Swap Euros for Tether (USDT) as Binance Faces Paysafe Debanking
Binance, the cryptocurrency exchange, is advising its European users to convert their Euros into Tether (USDT) by the end of October due to a disruption caused by the loss of support from its banking partner.
Deadline for Euro Conversion
On September 28, Binance issued an urgent notice to European users of Paysafe, urging them to convert their Euro balances in their Binance accounts to USDT before October 31. This action is in response to Paysafe’s unilateral decision to cease processing EUR deposits for Binance users.
Withdrawal Options Remain Open
While Paysafe users won’t be able to trade EUR spot trading pairs on Binance from September 28 at 4:00 am UTC, they can still withdraw their EUR balances from Binance accounts to their bank accounts.
Disruptions in Trading and Binance Convert
The disruptions extend to the trading sphere as Binance Convert, which operates like a token swap, will also have restrictions on EUR transactions. Spot trading pairs in EUR will be halted, and open orders canceled an hour after the suspension begins.
Seeking New Fiat Channels
In response to the disruption, Binance stated that they are actively working to integrate new fiat channels onto their platform soon, providing alternative solutions for users.
Regulatory and Debanking Challenges
This development adds to Binance’s ongoing regulatory and debanking challenges in Western markets. Paysafe had previously suspended GBP transactions in May due to concerns raised by UK financial regulators.
Binance’s Western Journey
Binance’s journey in Western markets has been tumultuous. In June, the exchange announced its departure from the Netherlands, and Belgian authorities ordered it to halt its services shortly after. However, registrations for Belgian residents were reopened on September 26.