Binance has said it will suspend bank deposits in euros from one of Europe’s key payment networks in the latest sign of how the cryptocurrency will lose key connections with the conventional financial system following a regulatory crackdown.
In an email to users Tuesday, the exchange said that by 8 a.m., universal coordinated time Wednesday, customers will no longer be able to deposit funds through the Single Euro Payment Zone, or Sepa schemes. His move was due to “events beyond our control,” the exchange said.
The network, an EU project that aims to harmonize euro payments across the region, allows consumers to send euros to three dozen countries.
Binance, who typically accesses Sepa through payment intermediaries, described the move as “temporary”. But the restriction marks u last prohibition on customers moving funds toward exchange from conventional banks and other types of financial accounts. Deposits through the UK’s Fastest Payments network are available also been disabled during the past week. Barclays, one of the region’s largest lenders, said Monday that it is except UK customers to buy cryptocurrencies on the exchange with bank cards.
Withdrawals are always possible through Sepa and Faster Payments, according to the Binance website. The European Payments Council, which manages Sepa, could not be immediately reached for comment.
Clear Junction, a payment processor that provided Binance access to the fastest payments and to Sepa, did not immediately respond to a request for comment.
Regulators around the world have taken up the sprawling company, which has traded more than $ 5tn in trade this year and says it lacks a formal seat.
The UK finance minister said Binance is not authorized to manage a cryptocurrency operation in the country, while Japan recently warned of exchanges that made unauthorized cryptocurrency trade with Japanese citizens. Thailand has launched a criminal investigation into the company, while the Cayman Islands, where Binance is incorporated, said the group is not licensed to conduct crypto activities in the jurisdiction.
Binance customers have been able to circumvent the bars on the deposit of traditional currencies by transferring their digital currencies from another exchange cryptocurrency or cryptocurrency.
Binance added that users were still able to buy coins and assets on their credit and debit cards. He “worked hard to find a solution with our partners,” he added.
The exchange also allows customers to transfer payments in euros through a network called Sofort, which is widely used in Germany, Austria and Switzerland. A Binance spokesman did not immediately respond to a request for comment on the Sepa suspension.