Binance Confronts Payment Option Difficulties in U.S. and Europe

Aug 25, 2023, 1:23PM
2 min, 11 sec READ

Binance is addressing various fiat transfer restrictions that have affected its customers around the world.

Binance, the largest crypto exchange in the operation, addressed issues around payment methods in major service regions toward the end of August.

Binance.US Could Soon Resume USD Transfers

Binance.US, the independent American arm of Binance, is reportedly planning to work with Moonpay to allow users to spend U.S. dollars.

Moonpay CEO Ivan Soto-Wright told Bloomberg on Aug. 7 that his company would work with Binance.US to that end. This agreement would allow users with debit or credit cards, Apple Pay, or Google Pay to purchase stablecoins for trading. The relationship would additionally see Moonpay handle KYC for Binance.US customers.

The partnership could reverse policies enacted following charges from the U.S. Securities and Exchange Commission, which disrupted Binance.US' relationship with its banking partners and ultimately led the company to discontinue USD transfers.

Binance.US' status page suggests that all U.S. dollar options remain unavailable, though cryptocurrency-only trading is still an option.

Binance's Euro Options Also in Flux

That news comes alongside reports that users in Europe saw restricted SEPA transfers in late August, an issue that Binance has failed to provide complete clarity on.

Paysafe, the payment partner responsible for Binance's euro deposits and withdrawals, has provided an explanation. Paysafe confirmed that euro deposits and withdrawals would be available to existing Binance users until Sept. 25 but also noted that euro transfers had become unavailable to new users starting on June 25.

It is unclear how Binance plans to restore euro options, though the firm said it plans to “have alternatives for ... users in place” before the Sept. 25 cutoff date.

British Pound Issues Briefly Seen in June

Both developments emerged weeks after Binance briefly halted transfers involving the British pound (GBP) in late June. However, the company quickly restored GBP transfers via certain routes including Faster Payments and bank card transfers.

The company also said that U.K. FCA notices that prevent it from establishing in the U.K do not affect its services on Binance.com — presumably including GBP transfers. Changes at another payments partner, Skrill, also appear to be unrelated to the service halt, as that affected Binance's GBP transfers no later than May 22, 2023.

Overall, concerns about Binance’s ability to accept fiat transfers are merited, though the company is providing users with options in a timely manner.

Binance has not lost its dominance amidst controversies, as it handles $6.5 billion in daily trading volume. Binance.US handles a more modest $10 million daily.

Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.