Binance France is advising its customers to promptly convert any fiat currencies they have stored on the platform into cryptocurrencies after losing its euro banking partner, Paysafe. The partnership between Binance France and Paysafe, which facilitated euro deposits and withdrawals via SEPA bank transfers, expired on September 25. Although the termination of this partnership was announced in June, Binance France has yet to secure a new partner for this service. In response to the situation, Binance France is recommending that users convert their fiat balances into cryptocurrencies as soon as possible, with plans to onboard new partners and provide updates in the near future.
Reports from users indicated that upon opening the mobile app, a window appeared automatically suggesting the conversion of fiat balances to cryptocurrency. Fiat withdrawal issues were already affecting Binance customers in Europe at the end of August, with the company citing its inability to support euro withdrawals and deposits via SEPA due to a lack of payment provider.
A spokesperson for Binance France clarified that the partnership with Paysafe is not entirely concluded. The partnership involves Paysafe discontinuing SEPA deposits and phasing out other fiat services, with Binance offering users the option to convert fiat balances into cryptocurrencies for free in anticipation of the partnership's end.
Binance has been grappling with regulatory challenges, particularly in Europe, where it faced law enforcement scrutiny for alleged non-compliance with financial sanctions related to Russia. The exchange's regulatory troubles led to its withdrawal from the Netherlands in June, followed by a cease-and-desist order from Belgian authorities. However, on September 25, Binance announced the reopening of new registrations for Belgian residents. On September 27, it disclosed a complete exit from the Russian market, selling its operations to the newly launched cryptocurrency exchange CommEX.
