Binance begins limiting access to SEPA customers more than a month ahead of announced deadline
Binance has started the process of early account closures for a select group of its customers within the SEPA (Single Euro Payments Area). This move comes ahead of the previously announced termination of SEPA services on 25th September 2023 due to disruption with their EUR Fiat payments partner, Paysafe.
Several Binance users in the SEPA region reported receiving emails regarding the early closure of their accounts. According to an email sent to customers, specific “high frequency Paysafe services user[s],” these accounts would be closed early “to speed up the refunding process and to make sure that everything is in order,” before promising refunds “as soon as possible.”
A Binance spokesperson confirmed the early closures in a comment emailed to CryptoSlatae:
“The SEPA deposit and withdrawal service will continue until 25 September as originally communicated. As we approach that date, some users may occasionally be asked for more information as part of routine compliance checks, which could lead to early closure of their accounts. We apologize for the inconvenience and it is important to note that we will have alternatives for our users in place before the end of the SEPA service.”
Earlier reports had highlighted Binance’s plan to cut off SEPA services for its users by September 25th. This decision followed the company’s loss of its Euro payment partner and subsequent denial of licensing in Germany.
Binance’s recent moves signal a tumultuous period for the exchange in Europe. Withdrawing from its German licensing application is the latest in a series of setbacks as it tries to establish itself within the region. In the span of just a month, Binance has retracted from five European nations, including Germany, the Netherlands, Austria, Cyprus, and the U.K., all due to difficulties in securing necessary regulatory approvals.
Binance’s regulatory hurdles are not limited to Europe. The exchange is currently under the scrutiny of U.S. regulators as well. Both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have initiated lawsuits against Binance, its principal subsidiaries, and its CEO, Changpeng Zhao, over various alleged regulatory breaches.
