Why Binance asks its customers to convert their euros into USDT

Disowned by Paysafe last July, Binance is now asking its European users to convert their euros into USDT. Transactions in euros are now unavailable and investors have until October 31, 2023 to complete the maneuver.

If there is one platform that has benefited from the fall of FTX, it is Binance. The exchange has largely consolidated its position as number one among cryptocurrency exchanges. So far, at least. In addition to the open war currently underway with the American authorities, the SEC and the FTC in the lead, Binance also has to face certain problems in Europe.

No more European partners

In July 2023, the company announced the end of its collaboration with its European partner Paysafe Payment Solutions. In practice, this means the end of deposits and withdrawals by SEPA transfer. As a reminder, the Single Euro Payments Area (SEPA) system is a cross-border payments network that allows transactions to be carried out at lower costs. This includes member countries of the European Union and a few other states, such as the United Kingdom.

Unsurprisingly, the blow is hard for Binance. Especially since the decision comes directly from Paysafe. “Following a strategic review, we have made the decision to cease offering our Binance integrated wallet solution across the entire EEA region”was then content to explain the company.

Deprived of its partner, the exchange then warns its users that they have until September 25 to act accordingly. In fact, SEPA transfers have been unavailable since Monday.

Convert your euros to USDT

However, the measures do not stop there. Indeed, since Thursday, September 28, European users can no longer buy or sell cryptocurrencies with euros (EUR). Likewise, Spot Trading Bots on EUR-USDT and EUR-BUSD pairs is unavailable. A temporary situation according to Binance, pending the arrival of its new partner.

That being said, the platform also invites European investors to convert their EUR into USDT, Tether’s stablecoin indexed to the US dollar. “Paysafe has taken the decision to completely stop processing deposits in euros from customers on our platform and we recommend that our affected users take appropriate measures”underlines Binance.

Important thing to know, there is a deadline. Thus, the stock market specifies on his website that the conversion is possible until October 31, 2023. Note that the exchange maintains an exit door for the most skeptical. Alongside the announcement, Binance specifies that “Users can continue to withdraw their EUR balances from their Binance accounts to their bank accounts”.

It remains to be seen whether the platform will be able to return to normal activity in Europe. This in fact comes up against certain financial regulators in the Old Continent, in France and Belgium in particular. Pushing Binance to get creative to stay afloat.

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