Binance, a prominent cryptocurrency exchange, is contemplating legal action against its former payments provider, Checkout.com, as confirmed by a Binance spokesperson on August 18.
This potential legal conflict arose from letters sent by Checkout.com to Binance on August 9 and 11. The CEO of Checkout.com, Guillaume Pousaz, reportedly terminated the business relationship with Binance, citing concerns over regulatory actions and orders from relevant jurisdiction s. The Termination specifically raised issues related to anti-money laundering measures, sanctions, and compliance controls.
In response, a Binance spokesperson stated that they disagree with the basis presented by Checkout.com for the termination and are actively considering options for legal action. Despite this development, the spokesperson clarified that Binance still offers ingress and egress services through the platform.
Nevertheless, this termination led Binance to cease its regulated cryptocurrency trading business known as Binance Connect on August 16. Launched in March 2022, Binance Connect served as a fiat-to-crypto payment provider, bridging the gap between crypto firms and the traditional financial system 。 The platform supported over 50 cryptocurrencies and fiat transactions.
Binance's relationship with Checkout.com had been significant, as it was reportedly the latter's largest customer with a monthly transaction volume of around $2 billion in 2021. Binance has encountered challenges in its banking relationships over recent months. Its affiliation Liates worldwide have struggled to secure banking partners, and in various regions, such as Europe, Australia, and the United States, it has faced difficulties due to banking disruptions. Binance CEO Changpeng Zhao even hinted at the possibility of acquiring a bank in response to the ongoing crisis. Binance is also dealing with legal issues, having been sued by the US Securities and Exchange Commission in June for alleged securities law violations and issuing unregistered securities.
