Binance said it will suspend euro bank deposits from one of Europe’s major payment networks in the latest sign of how the crypto firm is losing key connections to the conventional financial system after a regulatory crackdown.
In an email to users on Tuesday, the exchange said that from 8 a.m. universal coordinated time on Wednesday, customers would no longer be able to deposit funds through the Single Euro Payments Area or Sepa schemes. The 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, will allow consumers to send euros to three dozen countries.
Binance, which Sepa typically approaches through payment intermediaries, described the move as “temporary”. But the restriction marks the latest ban on customers moving money from conventional banks and other types of financial accounts to the exchange. Deposits via the UK’s Faster Payments network have also been disabled for the past week. Barclays, one of the largest lenders in the region, said Monday that it is banning British customers from buying cryptocurrencies on the exchange using bank cards.
Withdrawals are still possible through Sepa and Faster Payments, according to Binance’s website. The European Payments Council, which runs Sepa, was not immediately available for comment.
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Clear Junction, a payment processor that has provided Binance access to both Faster Payments and Sepa, did not immediately respond to a request for comment.
Regulators around the world have cracked down on the sprawling company, which processed more than $5 trillion in transactions this year, saying it has no formal headquarters.
The UK’s financial watchdog said last month that Binance is not authorized to conduct any crypto asset operation in the country, while Japan recently warned the exchange that it was doing illicit crypto business with Japanese citizens. Thailand has launched a criminal investigation into the company, while the Cayman Islands, where Binance is incorporated, have said the group is not licensed to conduct crypto activities in the jurisdiction.
Binance customers have been able to get around traditional currency deposit rules by transferring their digital coins from another crypto exchange or cryptocurrency wallet.
Binance added that users could still purchase coins and assets on their credit and debit cards. It was “working hard to find a solution together with our partners,” it added.
The exchange also allows customers to transfer euro payments through a network called Sofort, which is widely used in Germany, Austria and Switzerland.
Binance confirmed the authenticity of the email to customers, but declined to comment on the relationship with payment partners.