Euro Withdrawal Turmoil Hits Binance Users in Europe

Martin Walker
Aug 21, 2023 at 04:18 pm

Clients of the Binance crypto platform are reportedly encountering difficulties concerning the withdrawal of traditional currency in Europe due to complications involving the Single Euro Payments Area (SEPA) transfers.

Allegedly, the platform has temporarily suspended euro deposits and withdrawals via the SEPA method, as stated in a now-deleted message on X (formerly known as Twitter) on August 20th by Binance's customer support.

In their post, the cryptocurrency exchange mentioned that they are unable to provide a specific timeline for the restoration of SEPA transfers. The platform further elaborated that their payment service provider can no longer facilitate these transactions.

Binance expressed awareness of the inconvenience caused and assured its active efforts to rectify the situation at the earliest opportunity.

This declaration was prompted by a purported European user of Binance who claimed to have purchased a significant amount of euros on the platform several days prior. The user expressed frustration over their inability to withdraw the euros to their bank account or to sell them on Binance due to the closure of their Paysafe account. The user added:

"Based on communication with customer support, it appears that I am left with no recourse other than patiently awaiting Binance's engagement of a new payment service provider. The scenario of permitting users to acquire euros and then promptly restricting access is reminiscent of unscrupulous exchanges, a behavior uncharacteristic of Binance."

This revelation comes a few months after Binance apprised its users that its existing European banking collaborator, Paysafe Payment Solutions, would cease its support for the cryptocurrency exchange. Binance indicated at that time:

"Users will need to update their banking details used for Binance account deposits and may need to consent to new terms and conditions to continue utilizing SEPA services post the specified date."

In a written response to Cointelegraph, Binance clarified that the erroneous customer support message on X was sent in error, and the SEPA deposit and withdrawal service will be operational until September 25th, in line with the initial communication.

Additionally, a spokesperson from Binance conveyed to Cointelegraph in a separate statement that with the impending approach of September 25th, some users might occasionally be prompted for further information as part of standard compliance checks. This could potentially result in the premature closure of their accounts. The spokesperson reassured that Binance is diligently working on alternative solutions for their users before the conclusion of the SEPA service.

Binance's recent challenges relating to withdrawals in Europe are not unprecedented for the exchange. In May, the platform suspended Bitcoin withdrawals due to an extensive backlog of pending withdrawal requests. This halt followed a day after Binance faced its inaugural withdrawal disruption due to a congested Bitcoin mempool, where over 400,000 transactions were stranded on the blockchain.

Related News

Sign up for daily crypto news in your inbox

Get crypto analysis, news and updates right to your inbox! Sign up here so you don't miss a single newsletter.