Binance ‘temporarily suspends’ payments from EU’s Sepa network

Binance said it will suspend euro bank deposits from one of Europe’s key payments networks in the latest sign of how the crypto firm is losing key connections to the conventional financial system following a regulatory crackdown.

In an email to users on Tuesday, the exchange said that from 8am universal co-ordinated time on Wednesday, customers would no longer be able to deposit funds through the Single Euro Payments Area, or Sepa, schemes. Its move was due to “events beyond our control”, the exchange said.

The network, an EU project that aims to harmonise euro payments across the region, allows consumers to send euros across three dozen countries. 

Binance, which typically accesses Sepa through payment intermediaries, described the move as “temporary”. But the restriction marks the latest prohibition on customers moving funds on to the exchange from conventional banks and other types of financial accounts. Deposits through the UK’s Faster Payments network have also been disabled over the past week. Barclays, one of the region’s biggest lenders, said on Monday that it is barring UK clients from buying cryptocurrencies on the exchange using bank cards. 

Withdrawals are still possible through Sepa and Faster Payments, according to Binance’s website. The European Payments Council, which runs Sepa, could not immediately be reached for comment.

Weekly newsletter

For the latest news and views on fintech from the FT’s network of correspondents around the world, sign up to our weekly newsletter #fintechFT

Sign up here with one click

Clear Junction, a payments processor that has provided Binance access to both Faster Payments and Sepa, did not immediately respond to a request for comment.

Regulators around the world have been cracking down on the sprawling company, which has processed more than $5tn in trades this year and says it lacks a formal headquarters. 

The UK’s financial watchdog last month said Binance is not authorised to run a crypto asset operation in the country, while Japan recently warned the exchange that it was doing unauthorised crypto business with Japanese citizens. Thailand has launched a criminal investigation into the company, while the Cayman Islands, where Binance is incorporated, has said the group is not licensed to do crypto business in the jurisdiction. 

Binance customers have been able to circumvent bars on depositing traditional currencies by transferring their digital coins from another crypto exchange or cryptocurrency wallet.

Binance added that users were still able to buy coins and assets on their credit and debit cards. It was “working hard to find a solution with our partners”, it added.

The exchange also allows customers to transfer euro payments through a network called Sofort, which is widely used in Germany, Austria and Switzerland.

Binance confirmed the authenticity of the email to clients, but declined to comment on its relationship with payment partners.

Source link


Russian group behind SolarWinds spy campaign conduct new cyber attacks

The Russian hackers who breached several US government agencies last year have hijacked an email system used by USAID, the development agency, to...

High government cash balance likely to limit additional borrowing

Lockdowns may have dented the government's revenues, but there's a positive side too.The central government's cash balance with the Reserve Bank of India...

Private equity groups near deal to buy Medline for $34bn

A consortium of private equity groups, including Blackstone and Carlyle, is close to acquiring medical supply group Medline for about $34bn, including debt,...

Microsoft to launch Xbox TV app and standalone xCloud streaming stick

Earlier, Xbox chief Phil Spencer had hinted at an Xbox application which runs on television in his comments last year.Microsoft is working in...

GR Infraprojects IPO: GR Infraprojects IPO to open on July 7; price band set at Rs 828-837/share

NEW DELHI: GR Infraprojects on Thursday said it has fixed a price band of Rs 828-837 a share for its Rs 963-crore initial...