Binance cryptocurrency exchange faces payment processing issues, limits withdrawals in Europe

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  • Major cryptocurrency exchange Binance has halted euro withdrawals in Europe due to SEPA transfer issues
  • Users faced frustration as they couldn’t access their funds, reminiscent of previous withdrawal problems
  • Binance attributed the problem to difficulties with its payment provider and have not stated when it will be restored

Binance, one of the world’s largest cryptocurrency exchange, has reportedly encountered difficulties with fiat withdrawals in Europe. This is due to complications associated with Single Euro Payments Area (SEPA) transfers. In a message that has since been removed from their official communications on X (formerly known as Twitter), Binance’s customer support revealed on August 20th that they had suspended both euro withdrawals and deposits via SEPA.

The exchange did not specify a definitive timeline for restoring SEPA transfers. It explained that their payment provider could no longer facilitate these transactions. In response to the predicament, Binance expressed its understanding of the inconvenience this situation has caused. Moreover, it emphasized their active efforts to resolve the issue promptly.

This development came as a response to a European user. The user alleged they had recently purchased substantial euros on the Binance platform. The aggrieved user lamented their inability to withdraw these funds to their bank account or trade them on Binance. This is due to the closure of their Paysafe account. In their complaint, the user voiced frustration at the lack of options. Furthermore, they stated that Binance’s actions were reminiscent of unscrupulous exchanges rather than a reputable platform like Binance.

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This episode follows Binance’s earlier announcement that its current euro banking partner, Paysafe Payment Solutions, would cease supporting the cryptocurrency exchange. In response to this, Binance informed its users that they would need to update their banking details used for deposits. Users are to potentially accept new terms and conditions to continue utilizing SEPA services.

These withdrawal-related issues in Europe are not isolated incidents for Binance. In May, the exchange halted Bitcoin withdrawals, attributing the pause to a substantial backlog of pending withdrawals. This suspension occurred shortly after Binance’s first withdrawal outage, which transpired amid a congested Bitcoin mempool. During this episode, over 400,000 transactions were stuck in the blockchain’s backlog.

The Binance cryptocurrency exchange, widely recognized for its global presence and diverse trading options, has encountered fresh challenges related to fiat withdrawals in the European market. These issues have been attributed to problems arising from SEPA transfers. It is worth noting that SEPA is a popular method for transferring euros within the European Union. In response to the complications, Binance temporarily suspended euro withdrawals and deposits via SEPA, raising concerns among its user base.

The exchange’s customer support team conveyed this development through a message posted on a social media platform that was later deleted, indicating the sensitive nature of the situation. In their statement, Binance acknowledged the absence of a specific timeline for the restoration of SEPA transfers and cited the inability of their payment provider to support these transactions as the underlying cause. Despite the inconvenience users face, Binance assured its commitment to resolving the issue promptly.

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The origin of this predicament can be traced back to a frustrated Binance user located in Europe. This user claimed to have made a significant euro investment on the Binance platform but encountered insurmountable difficulties when attempting to withdraw these funds to their bank account or execute trades on the exchange. The closure of their Paysafe account further exacerbated their problems. The user’s dissatisfaction was evident in their comments, where they likened Binance’s actions to those of untrustworthy exchanges rather than a reputable industry leader.

This incident is not the first time Binance has faced challenges related to its European operations. Several months prior, the exchange had informed its users that its euro banking partner, Paysafe Payment Solutions, would cease to support Binance’s services. In response to this development, Binance communicated that users would need to update their banking information used for deposits. They would also need to potentially accept new terms and conditions to continue utilizing SEPA services.

These recent withdrawal difficulties in Europe echo an earlier incident in May when Binance suspended Bitcoin withdrawals. At that time, the exchange cited a substantial backlog of pending withdrawal requests as the reason behind the decision. This suspension occurred closely following Binance’s initial withdrawal outage, which took place during a period of congestion in the Bitcoin mempool. During this episode, a staggering 400,000 transactions became stuck within the blockchain’s backlog.

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In summary, Binance, a prominent player in the cryptocurrency exchange industry, has faced fresh challenges in its European operations, particularly concerning fiat withdrawals using SEPA transfers. These difficulties have prompted the exchange to temporarily halt euro withdrawals and deposits via SEPA, a move that has understandably raised concerns among its user base. The root cause of this predicament can be traced to complications related to their payment provider and the closure of accounts such as Paysafe. Binance has expressed its understanding of the inconvenience faced by its users and has committed to resolving the issue as swiftly as possible.

This incident is not an isolated one for Binance in Europe. It follows a previous announcement regarding the discontinuation of support from their euro banking partner, Paysafe Payment Solutions. To continue using SEPA services, users were required to update their banking information and potentially accept new terms and conditions.

Furthermore, Binance has encountered withdrawal-related issues before, as evidenced by the suspension of Bitcoin withdrawals in May. These actions were prompted by a substantial backlog of pending withdrawal requests. This is a problem that emerged during a period of high congestion in the Bitcoin mempool. Despite these challenges, Binance remains a prominent player in the cryptocurrency exchange industry, with its global reach and diverse offerings.

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JOSEPH KANGETHE
JOSEPH KANGETHE
I am a tech, business, and investment news reporter covering Africa. Most of what is good in Africa is obscured by preconceptions, yet there is still a lot of good going on. Technology is what is driving the continent and this is my passion. For Africa, I share the stories that are important to Africans.
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