Binance limits withdrawals in Europe, cites payment processor issues

Customers of the Binance cryptocurrency exchange are allegedly facing troubles with fiat withdrawals in Europe due to issues related to Single Euro Payments Area (SEPA) transfers.

The exchange has allegedly suspended euro withdrawals and deposits via SEPA, Binance’s customer support wrote in a now-deleted message on X (formerly Twitter) on Aug. 20.

In the post, the cryptocurrency exchange said it didn’t have a specific time frame for restoring SEPA transfers, adding that its payment provider “can no longer support these transactions.”

“We understand the inconvenience this has caused, and we’re actively working to resolve this as soon as possible,” Binance said.

The statement came in response to an alleged Binance user in Europe, who claimed to have bought a “large amount of EUR on Binance” a few days ago. The alleged client complained about being unable to withdraw the euros to their bank account or sell them on Binance due to the closure of their Paysafe account. They added:

“According to customer support there is nothing I can do about it except waiting for Binance to find a new payment provider. Letting users buy EUR, just to block them from accessing it right afterwards is what you would expect from scam exchanges, not Binance.”

The news comes a few months after Binance informed users that its current euro banking partner, Paysafe Payment Solutions, would discontinue support for the crypto exchange. 

Related: PayPal UK to halt Bitcoin purchases until early 2024

“Users will need to update the banking details used to deposit to their Binance accounts and may be required to accept new terms and conditions to continue using SEPA services after this date,” Binance said at the time.

In a written response to Cointelegraph, Binance said the customer support message on X was “sent in error,” adding that the “SEPA deposit and withdrawal service will continue until 25 September as originally communicated.”

In a separate statement, a Binance spokesperson told Cointelegraph that as Sept. 25 approaches, “Some users may occasionally be asked for more information as part of routine compliance checks, which could lead to early closure of their accounts.” The spokesperson added that Binance “will have alternatives for our users in place before the end of the SEPA service.”

Binance’s recent withdrawal-related issues in Europe are not rare for the exchange. In May, the exchange halted Bitcoin (BTC) withdrawals, citing a large backlog of pending withdrawals. The halt came one day after Binance experienced its first withdrawal outage amid a clogged Bitcoin mempool, with more than 400,000 transactions getting stuck on the blockchain.

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