Actually, the financial services provider Paysafe was supposed to enable deposits and withdrawals via SEPA bank transfer for Binance’s EU customers until September 25. But now there are problems even before the deadline.
Crypto exchange Binance has to admit that not everything is going according to plan with the separation from the important financial service provider Paysafe, which was announced on September 25. Around 0.085 percent of Binance customers in the EU, who also use services from Paysafe, are currently unable to make withdrawals in euros via SEPA bank transfer, a spokesperson confirmed to trade portal CoinDesk. He added that they were “very disappointed” with Paysafe’s decision to temporarily block individual customers.
Previously, cases of affected Binance customers had become known. Ervin Ursic Kovac, for example, complained he sent some Ethereum (ETH) to Binance on Sept. 12 and sold it for euros. But when he tried to trigger the payout, a message appeared saying his account needed to be verified. Yet he had been able to withdraw euros from Binance via Paysafe without any problems just the day before. Paysafe declined to comment on individual cases, pointing to proceeding “in full compliance with our contractual and regulatory obligations.”
The impending separation of Binance and Paysafe had been publicized as early as June, citing September 25 as the deadline. In August, there had been false reports that the cooperation between Binance and Paysafe would end earlier than planned. Why Paysafe and Binance will go their separate ways in the future has not been officially communicated. Pressure from regulators is suspected.
Binance is promising priority customer service to customers who are now experiencing issues with Paysafe. They will be informed individually through the Binance app and via email when the surprise audits of Paysafe have been completed. It remained open whether any compensation payments are also planned.
Conclusion: Binance needs new SEPA service provider
Deposits and withdrawals at crypto exchanges are usually via normal SEPA bank transfer the cheapest method to transfer euros. Therefore, it should be a priority for Binance to appoint a successor to Paysafe for these services. Actually, this should also happen before September 25, but has not happened yet. In 2021/2, Binance was already without a SEPA service provider for half a year, which understandably disappointed customers. Let’s hope that this situation will not repeat itself and that Binance will soon present a new partner to take over Paysafe’s tasks.
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