In a surprising turn of events, London-based credit card processing company Checkout.com has severed its contract with cryptocurrency giant Binance. This decision comes as a result of apprehensions surrounding regulatory compliance.
This represents a notable blow to Binance, previously Checkout.com’s biggest client, enabling numerous crypto transactions. The discontinuation coincides with reports of regulatory actions and investigations in relevant regions.
Checkout.com had been processing between $300 million and $400 million in Binance transactions recently, according to sources.
This move by Checkout.com adds to a growing list of payment providers such as European payments provider PaySafe, distancing themselves from Binance amid ongoing investigations in multiple countries.
According to the report, the CEO of Checkout.com, Guillaume Pousaz, sent two letters to Binance on August 9 and 11, stating the company’s decision to end their relationship.
The letters cited issues with Binance’s anti-money laundering, sanctions, and compliance controls. The termination is set to take effect on August 17, 2023.
In response to the letter, Binance disagrees with Checkout’s reasoning and considers legal action. Binance’s spokesperson, Dewi Mustajab, mentioned that the company has worked extensively to develop a top-tier compliance program.
They are focused on building stronger trust with both regulatory bodies and their partners in the industry.
Furthermore, the separation also affects Binance Connect, the platform facilitating crypto payments for businesses, which was supported by Checkout.com.
Binance, once Checkout.com’s major client, played a pivotal role in boosting the payments company’s trading volumes.
The crypto exchange’s decision to launch Bifinity, its own payments platform, in partnership with Checkout.com and PaySafe showcased their foundational partnership.
From the beginning of 2023, the largest crypto exchange by volume of trade and justification of operations has been interfacing with regulatory challenges.
It was sued by the US SEC for illegally offering services to US citizens in the first week of June 2023. In the same month, its application for a license was rejected by the German government.
On the contrary, countries such as El Salvador and Thailand granted the exchange license to operate in H1 2023.
