Binance Temporarily Suspends SEPA Bank Transfers
- Starting 8:00 am UTC on Wednesday, Binance users will no longer be able to deposit euros through SEPA.
- Binance said the suspension was “due to events beyond our control”, and that it was already working with its partners to find a solution.
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Popular cryptocurrency exchange Binance has temporarily paused bank transfers from the European Single Euro Payments Area (SEPA) due to events “beyond” its control, the Financial Times reported on 7 July.
According to the publication, Binance has sent out emails to its customers informing them that SEPA bank payments will be put on hold starting 8 am UTC on 7 July. While the company did not specify the reason behind the decision — only saying it was “due to events beyond our control” and that it was working hard to “find a solution with our partners” — it most likely stems from the regulatory pressure it has recently experienced.
Stopping payments from SEPA — which is a network created to simplify bank transfers between 27 European nations — comes only a day after British multinational bank Barclays suspended payments to Binance. The bank pointed to an FCA decision to prohibit Binance Markets Limited — which Binance claims is a separate entity from the exchange — from conducting financial services in the U.K..
Binance’s CEO, Changpeng “CZ” Zhao, responded to the recent regulatory pressure in an open letter on Wednesday, saying the exchange was ready to work with financial authorities ir order to become a “positive contributor”. He further pointed out that Binance has always protected users’ interests, and has already set some industry standards, such as strict insider trading policies, and a Secured Asset Emergency Fund (SAFU). CZ further said in a statement:
“More regulations are, in fact, positive signs that an industry is maturing, because this sets the foundation for a broader population to feel safe to participate in crypto. I believe a well-developed legal and regulatory framework in the long term will be a solid foundation that truly makes crypto essential in everyone’s daily life”
This is not the first time Binance’s U.K. customers have been inconvenienced. Back in June, Binance also suspended GBP withdrawals through the Faster Payments platform, which major banks use for near-instant payments.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.