At the crypto exchange Binance, deposits in euros by bank transfer via SEPA are currently not possible. Withdrawals work as usual. Deposits by credit card are now free of charge at Binance.
Binance is rightly considered the world’s most important crypto exchange – but it currently has a problem in Europe at its interface with traditional banks. Because as customers and also the financial news agency Reuters reported, Binance can currently no longer accept deposits in euros via bank transfer. In an email to those affected, which Block-Builders.de has, there is talk of “temporary suspension (…) for reasons beyond our control.” Binance emphasizes that withdrawals in euros to bank accounts are still possible. In order to keep the unusual situation under control, Binance, according to its own announcement, is waiving fees for deposits in euros via credit card with immediate effect. Here, 1.8 percent were previously due.
Binance and regulation – an explosive topic
At the moment, we can only speculate about the background to the (temporary) stop of deposits in euros from the bank account at Binance. The crypto exchange does not provide any further details upon request. Media reports recall that Binance was most recently targeted by regulators in the UK, Thailand and Japan. In Germany, BaFin is investigating whether Binance is acting legally with its tokenized stock offering.
On the other hand, Binance’s chief executive points to efforts and successes in cooperating with law enforcement in an open letter. In 2021 alone, he says, they have already assisted authorities in 5,600 cases, including providing a group of cyber criminals whose money laundering and activities are estimated to be worth more than half a billion US dollars.
Binance CEO CZ is clearly in favor of regulation of the crypto industry in his general statement, accepting that regional markets have their own sets of laws. The timing of his admission on the subject of crypto and regulators is unlikely to coincide with Binance’s suspension of SEPA deposits. For as suddenly as this happened without announcement and clear justification, a loss of trust is bound to occur. What if tomorrow withdrawals from Binance in euros to bank accounts were also no longer possible?
Conclusion: Smart investors trust hardware wallets
On closer inspection, there is probably no reason to panic at Binance despite the inconveniences regarding SEPA. This bottleneck is being circumvented for the time being with fee-free deposits by credit card, and there is currently no word of problems with withdrawals. But just in case, we remind you that there is no way around hardware wallets when dealing with Bitcoin and Co. Only with such models as Ledger Nano S or Ledger Nano X you can store your assets safely and completely independently of crypto exchanges and only transfer your Bitcoin to a reputable online platform when it is time for a trade.