Binance, the world’s leading cryptocurrency exchange, is currently facing withdrawal restrictions for a small portion of its European Union (EU) users due to the impending end of its partnership with payment giant Paysafe. Although Paysafe’s support services are scheduled to conclude on September 25, 2023, certain Binance EU users have been denied access to their funds in advance of the deadline.

Withdrawal Issues for Binance EU Users:
Approximately 0.085% of Binance EU users have been affected by the recent withdrawal restrictions imposed by Paysafe. Users like Ervin Ursic Kovac, for instance, encountered difficulties when attempting to withdraw their Euros. After selling ETH on September 12, 2023, Kovac was unable to withdraw the currency as a pop-up message from Paysafe informed him that his account had been abruptly closed without prior warning. This came as a surprise to Kovac, who had successfully withdrawn Euros just the day before.

Paysafe’s Early Account Closures:
Paysafe, as a high-frequency service provider, has resorted to closing accounts early to expedite the review process. The current restriction prevents affected Binance EU users from withdrawing any remaining EUR/GBP until their accounts have been reviewed. Displeased by this sudden development, Binance has assured its users that they are actively working to facilitate the swift return of funds from Paysafe. Users will be promptly notified via the exchange’s app once the review process is completed.

Paysafe’s Support Termination on the Horizon:
Europe’s payment giant, Paysafe, previously communicated its decision to terminate its support for Binance customers and dissolve its partnership with the exchange on September 25, 2023. The reason behind this decision, announced in May 2023, was Paysafe’s discontinuation of support for new UK customers due to regulatory complexities. Subsequently, Paysafe informed Binance EU customers that its services would no longer be available, following a strategic review of its partnership with the crypto exchange.

SEPA Transfers Temporarily Suspended:
In response to Paysafe’s termination, Binance announced the suspension of Single Euro Payments Area (SEPA) transfers since its current payment provider could no longer support them. However, it is unclear when SEPA transfers will be reinstated, as Binance later deleted the post containing this information. Furthermore, Paysafe’s decision to sever ties with Binance occurred amidst multiple lawsuits filed against the exchange, Binance.US, and its owner Changpeng CZ Zhao. The regulatory scrutiny faced by Binance in May 2023 prompted its withdrawal from several European countries as it prepares to comply with the EU’s upcoming Markets in Crypto Assets (MiCA) regulations set for 2024.

Disclaimer: The information provided in this research report is for informational purposes only and should not be interpreted as financial or investment advice. The NFT and cryptocurrency market is highly volatile, and readers should conduct thorough research before making any investment decisions.