London’s Checkout.com Ends Partnership with Binance Amid Regulatory Concerns
London-based credit card payment processor Checkout.com has officially severed its ties with Binance, the world’s largest cryptocurrency exchange. A spokesperson for Checkout.com confirmed this development, stating that the termination was communicated through two letters sent earlier this month. The announcement came to light thanks to a report by Forbes, shedding light on the escalating concerns surrounding Binance’s regulatory compliance and alleged issues with anti-money laundering measures.
Checkout.com, a major player in the fintech industry and valued at an impressive $40 billion as of January 2022, cited multiple reasons for the sudden termination. The company expressed deep-seated concerns arising from “reports of regulators’ actions and orders in relevant jurisdictions.” Furthermore, inquiries from partners have also contributed to the decision to end the partnership. The letters exchanged between the companies also brought attention to Binance’s alleged shortcomings in anti-money laundering protocols, sanctions adherence, and overall compliance controls.
Binance, however, is not taking this separation lightly. A spokesperson from the cryptocurrency exchange voiced their disagreement with Checkout.com’s claims and indicated that they are actively exploring the possibility of legal action. Despite these challenges, Binance remains steadfast in its commitment to collaborating with regulators and partners on a global scale.
This turn of events adds to Binance’s growing list of regulatory hurdles. Mere months ago, the U.S. Securities and Exchange Commission (SEC) dealt a significant blow by filing 13 charges against Binance and its CEO, Changpeng Zhao. These charges revolved around allegations of misleading regulators and violations related to securities operations. The cryptocurrency exchange has been grappling with the aftermath of these allegations while simultaneously dealing with the shutdown of its crypto payment service, Bifinity, and the deactivation of its Binance Connect service.
It appears that Binance’s troubles extend beyond U.S. borders as well. In Europe, the exchange has been met with a series of challenges, including the termination of its partnership with Euro payment partner Paysafe. The financial regulator of Germany, BaFin, further intensified Binance’s woes by denying the exchange a crypto custody license, thereby amplifying the difficulties it faces in the European market.
As the cryptocurrency landscape navigates the increasingly complex world of regulations and compliance, the separation between Checkout.com and Binance underscores the growing importance of upholding strict anti-money laundering measures and comprehensive compliance controls. The consequences of failing to meet these standards have not only financial implications but also potential legal repercussions, as seen in the ongoing clash between Binance and regulatory authorities.
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