The world’s largest crypto exchange, Binance, continues to wrestle with regulatory hurdles across Europe, particularly in France where it is currently without a banking partner. The company’s partnership with Paysafe, a digital payment services provider, expired in late September, cutting off Binance’s French subsidiary from essential infrastructure support for euro deposits and withdrawals. A newer partner is yet to be found, largely due to regulatory scrutinies and Binance’s alleged failure to fall in with financial sanctions against Russia.
In the meantime, Binance France has advised its users to convert all the fiat money they hold on the exchange into crypto. This comes after Binance customers across Europe had already been experiencing challenges with fiat withdrawals in August, forcing the company to suspend SEPA euro withdrawals and deposits due to their inability to support them without a payment provider.
As a short-term fix, users are prompted with a suggestion to convert their fiat balance into crypto every time they log in to the mobile application. While this free conversion of fiat balances into crypto offers a temporary solution, it may not be ideal for users who still want to transact in fiat currencies. Furthermore, with the company still searching for a new banking partner, a resolution of this issue could be farther on the horizon than users would like.
On the other side of the coin, Binance has been trying to navigate an array of regulatory issues for some time now, particularly in Europe. The company exited the Netherlands in June this year, followed by Belgium within the same week. More recently, in September, Binance announced its complete exit from Russia by selling its firm to a new crypto exchange company, CommEX, further solidifying its European exit.
While Binance’s attempt to keep its services running smoothly by recommending crypto conversions is commendable, it underscores the necessity for crypto exchanges to work cohesively with regulators. The fact remains that until comprehensive compliance with financial rules is achieved, the risk of major service disruptions and regulatory debacles will linger, potentially affecting market stability and user trust. Generating smooth synergy between blockchain technology and traditional banking systems is imperative, not only for Binance’s survival but for the entire crypto industry’s growth and maturity.
Source: Cointelegraph
