Binance said it will suspend bank deposits in euros, one of Europe’s major payment networks, and this is the latest sign of how the crypto company has lost its key connection with the traditional financial system following a regulatory crackdown.
The exchange stated in an email sent to users on Tuesday that starting at 8 a.m. UTC on Wednesday, customers will no longer be able to deposit funds through the single euro payment area or the Sepa plan. The exchange stated that the move was due to “events beyond our control.”
The network is a project of the European Union that aims to coordinate euro payments across the region, allowing consumers to send euros to more than 30 countries.
Binance, which usually visits Sepa through a payment intermediary, describes this move as “temporary.”But the restriction marks Latest ban Customers transfer funds from traditional banks and other types of financial accounts to exchanges.Deposit through the UK’s faster payment network Also disabled In the past week. Barclays Bank, one of the largest banks in the region, said on Monday, Ban UK customers Use bank cards to buy cryptocurrencies on exchanges.
According to the Binance website, withdrawals can still be made through Sepa and Faster Payments. The European Payments Commission responsible for Sepa could not be immediately reached for comment.
Clear Junction, a payment processor, provided Binance with access to Faster Payments and Sepa, but did not immediately respond to a request for comment.
Regulators around the world have been cracking down on this huge company, which processed more than $5 trillion in transactions this year and said it has no official headquarters.
The British financial regulator said last month that Binance is unauthorized It operates an encrypted asset business in the country, and Japan recently warned the exchange that it is conducting unauthorized encrypted business with Japanese citizens. Thailand has launched a criminal investigation against the company, while the Cayman Islands, where Binance is located, stated that the group has not been allowed to conduct cryptographic operations in that jurisdiction.
Binance customers have been able to circumvent the restrictions on depositing traditional currencies by transferring their digital coins from another cryptocurrency exchange or cryptocurrency wallet.
Binance added that users can still purchase coins and assets through credit and debit cards. It added that it is “working with our partners to find solutions.”
The exchange also allows customers to transfer payments in euros through a network called Sofort, which is widely used in Germany, Austria, and Switzerland. A Binance spokesperson did not immediately respond to a request for comment on the suspension of Sepa.