Binance suspended SEPA payments according to an e-mail sent by the stock exchange to its users.
SEPA payments have been suspended
The Binance e-mail states: “Due to events beyond our control, we are temporarily suspending deposits in EUR via SEPA bank transfers from 7 July 2021 8:00 UTC. You can still deposit EUR and / or buy cryptocurrencies via credit or debit cards at Binance. ”
This suspension of SEPA payments means that Binance users will lose access to one of the most common payment channels in Europe.
Binance did not explain why she was forced to suspend the service. However, some speculated about the cause. Since June 2020, Binance has been cooperating with Clear Junction Bank to process SEPA transfers. The bank may have decided to end its cooperation with Binance due to recent actions by the FCA and other regulators against Binance.
It is possible that Binance will re-enable SEPA transfers when it finds a new bank partner to work with. The stock exchange e-mail concludes with the phrase: “We are working hard to find a solution with our partners and thank you for your patience.”
The Binance report also states that outstanding SEPA payments will be returned to customers within a week.
FCA action leads to change
The FCA’s decision to block Binance in the UK, along with the FCA’s general warning about investing in cryptocurrencies, has led to several other changes in the country’s banking policies.
Two days ago, Barclays blocked its customers from sending funds through its credit and debit payments to Binance for customer protection reasons. Other banks in the UK have introduced new policies under FCA, Nationwide, Starling, Monzo and NatWest.
We will see if more banks take action and if other cryptocurrency exchanges than Binance are targeted.
Binance also faces problems in other jurisdictions. The Cayman Islands and Thailand are investigating the stock exchange, while Japan has issued a warning to Binance that it is operating without a license. If Binance is unable to comply with these regulators, they will be forced to end their service offerings in those countries, as it has recently had to do in Ontario, Canada.
The founder and CEO of Binance Changpeng Zhao (CZ) published a blog post on July 6, in which he stated, among other things:
“As I said at the end of 2020, compliance is the way to go – especially in new industries such as cryptocurrencies,” said CZ.
“The adoption and development of cryptocurrency has many parallels with the development of the automobile. When the car was first invented, there were no traffic regulations, traffic lights or even seat belts. Laws were made on the fly. ”