Binance loses another corporate partner
Date: 2023-08-19 Author: Karina Ziganova Categories: BLOCKCHAIN, BUSINESS
London-based credit card payment processor Checkout.com has cut ties with Binance, the world's largest cryptocurrency exchange, according to a spokesperson. The termination, which came through two emails sent earlier this month, was revealed in a Forbes report and later confirmed by TechCrunch.
Checkout.com, valued at $40 billion as of January 2022, cited concerns related to "reports of regulatory actions and orders in relevant jurisdictions" as well as "requests from partners" as reasons for the termination. The letters also highlighted concerns about Binance's alleged AML, sanctions, and compliance issues.
In response to the termination, Binance has expressed disagreement with Checkout.com's claims and is currently "considering our options for legal action," a spokesperson said. Despite the ongoing challenges, Binance remains "committed to continued cooperation with regulators and partners around the world."
Challenges around the world
This split follows a number of regulatory issues that Binance has faced. Just a few months ago, the US Securities and Exchange Commission (SEC) filed 13 charges against Binance and its CEO, Changpeng Zhao, in connection with allegations of misleading regulators about its operations and other securities violations. In addition, Binance recently announced the closure of its Bifinity crypto payment service and the shutdown of its Binance Connect service.
Binance's problems are not limited to the US. The exchange has faced a number of setbacks in Europe with the termination of its partnership with payment partner Paysafe. Germany's financial regulator BaFin also refused to grant Binance a license to hold the cryptocurrency, adding to its difficulties in the European market.
In June, Binance.US, US subsidiary Binance went into crypto-only mode after banking partners suspended their services, prompted by an SEC lawsuit against the exchange over allegations of securities violations.
The US Department of Justice (DOJ) is reportedly weighing criminal charges against Binance but remains cautious due to fears of a potential market panic reminiscent of the collapse of another crypto platform, FTX.
As regulatory scrutiny intensifies, current issues highlight the urgent need for clear and consistent rules in the booming cryptocurrency industry.
