Crypto news

Binance contemplates legal action as partnership with Checkout.com ends.

Following Checkout.com’s decision to withdraw support for the crypto exchange, Binance Connect was shut down on August 16.

This development highlights the impact of the partnership termination on Binance’s services and prompts discussions about the future direction of Binance’s connectivity options.

Binance, the crypto exchange, is contemplating legal action against its former payment provider,

Checkout.com. The potential dispute stems from letters sent by Checkout.com to Binance on August 9 and August 11.

According to reports, Checkout.com’s CEO, Guillaume Pousaz, terminated the relationship citing regulatory actions,

compliance concerns, and issues related to Anti-Money Laundering and sanctions.

In response, a Binance spokesperson expressed disagreement with Checkout.com’s grounds for termination and stated that legal options are being considered.

The spokesperson clarified that on-ramp and off-ramp services are still available on the exchange.

However, as a result of the severed business relationship, Binance made the decision to shut down BinanceConnect on August 16.

BinanceConnect, launched in March 2022, served as a regulated platform for buying and selling cryptocurrencies,

facilitating fiat-to-crypto transactions for over 50 digital assets.

Forbes reports that Binance was once Checkout.com’s largest customer,

with approximately $2 billion in transactions processed in a single month in 2021.

Binance Grapples with Banking Setbacks, Considers Acquiring a Bank

Binance has been grappling with a series of setbacks in its banking operations,

leading to challenges in finding partners across its global branches.

The debanking trend has been apparent for several months, with notable instances including Paysafe Payment Solutions discontinuing support for Binance’s euro banking operations in Europe.

Similarly, Binance’s Australian branch encountered an abrupt cutoff from the banking system in June,

without prior notice or consultation.

In the United States, BinanceUS has reportedly faced difficulties in securing banking partners,

and former partners Silvergate and Signature Bank were also impacted by the banking crisis earlier this year.

These developments have created an ongoing crisis for Binance, prompting CEO Changpeng Zhao to express openness to the idea of acquiring a bank as a potential solution,

as revealed in a recent interview.

This highlights the extent of the challenges faced by Binance in navigating the complex and evolving landscape of banking partnerships within the cryptocurrency industry.

Binance continues to face a slew of business and legal challenges, indicating that its troubles are far from resolved.

In a significant development, on June 5, the U.S. Securities and Exchange Commission (SEC) filed a lawsuit against the global exchange and its CEO.

The SEC alleges that Binance violated securities laws by offering unregistered securities within the United States.

This legal action by the SEC adds to the growing list of regulatory concerns surrounding Binance, further intensifying the scrutiny on the exchange’s operations.

The outcome of the lawsuit will have significant implications for the company and could potentially reshape the regulatory landscape for cryptocurrency exchanges in the United States.

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