Binance halted transactions across a vital European payment system, claiming unmanageable events as the main culprit behind the move. Binance stated that it would temporarily prohibit money deposited in the SEPA network of the EU. The Single Euro Payments Area is the EU’s most important payment network, making it simple to transmit cross-border transactions in euros between member countries.
SEPA, which operates in 27 countries, basically treats cross-border payments the same as local payments. Transfer rates and timeframes are similar to local payments, making this method more convenient for companies and people.
Binance, one of the world’s largest cryptocurrency exchanges, notified users via email on the 6th of July that payments had been suspended due to circumstances beyond its control. Payments will be refunded within seven days, but withdrawals will remain unaffected.
Binance, one of the world’s largest cryptocurrency exchanges, notified users via email on the 6th of July that payments had been suspended due to circumstances outside of its power. Payments will be refunded within seven days, but withdrawals will remain unaffected. This can be another significant move Binance is trying to appease regulators who have started to tighten exchanges, particularly since the beginning of 2021. Binance can be considered as the most visible exchange that is under such scrutiny.
It is uncertain what kind of an influence such a ban has on Binance. However, Binance may suffer significant retraction in addition to the other proceedings it is undergoing. The exchange will have to cooperate with authorities if it wants to retain its market domination; regardless, it will be fascinating to watch what sacrifices Binance makes.
Binance is having a difficult time
Following the current market surge, regulators are putting pressure on exchanges all around the world. This concerted global attempt to rein in the cryptocurrency market has platforms concerned about their businesses, but it seems that they must be ready to follow the regulations in an attempt to survive.
However, Binance is undoubtedly among the most notable platforms to be in danger, with several countries releasing comments threatening to prosecute the platform. The platform has frequently promised users and authorities that it will make every attempt to adhere to all regulatory requirements. However, it is almost guaranteed to meet more restrictions as time progresses.
The FCA of England stated that Binance lacks a license to operate in the nation. The platform reacted by stating that it does not maintain a UK firm and would follow all rules. Since then, Barclay’s bank has suspended financial transactions to the platform. According to the Japanese government, Binance is operating unlawfully in the nation, whereas Germany claims that it might face charges for providing tokens tied to equities. Meanwhile, Thailand Securities and Exchange Commission has filed a full-fledged criminal case against Binance for functioning without some kind of license.