• Binance is considering legal action against Checkout.com, its former payment provider, after receiving letters from them ending their business relationship.
• The termination of the business relationship led to the closure of Binance Connect, a regulated crypto buy-and-sell platform.
• Binance has been experiencing a debanking crisis over the past few months due to lack of banking partners and regulatory issues.
Binance Considering Legal Action Against Checkout
Binance is considering taking legal action against its former payment provider Checkout.com. This follows letters sent by Checkout.com to Binance on Aug 9 and 11 that ended their business relationship and led to the shutdown of Binance Connect, a regulated crypto buy-and-sell operation, on Aug 16. According to Forbes, Checkout.com had expressed concerns about Anti-Money Laundering (AML), sanctions and compliance controls as well as reports of regulators actions in relevant jurisdictions when ending their partnership with Binance.
Debanking Crisis
The potential dispute comes amidst an ongoing debanking crisis at Binance which saw several of its global branches struggling to find partners due to regulatory issues or lack of banking partners in certain countries such as Australia, Europe and the United States where Silvergate and Signature Bank were shut down earlier this year amid the banking crisis. As a result, Changpeng Zhao – CEO of Binance – has even considered buying a bank in order for his exchange to continue operations without disruption caused by third party providers or banks withdrawing support for crypto related services or products offered by his company.
Checkout Termination
Checkout was once one of Binance’s largest customers handling approximately $2 billion worth of transactions during one month back in 2021 before it decided to end its service citing concerns about AML regulations and other compliance measures which would have increased costs for both companies while putting them at risk if not implemented properly according to Guillaume Pousaz – CEO of Checkout – who also expressed doubts about reports from regulators in certain jurisdictions regarding alleged activities carried out by users registered with the exchange that they should have prevented through better customer due diligence procedures among other measures put in place by any responsible financial institution operating within those markets where more stringent requirements are enforced than elsewhere around the world .
Continued Support
Despite having discontinued its partnership with Checkout , on-ramp and off-ramp services remain available at the exchange allowing customers to purchase various cryptocurrencies using fiat money as well as cashing out digital assets into local currencies without too much hassle thus providing peace of mind knowing that despite this setback there are still ways for traders interested in cryptocurrency trading or investing activities can manage their funds easily without having to worry about finding alternative solutions such as peer-to-peer exchanges which come with inherent risks associated with them that could be avoided simply by using legitimate services offered directly from exchanges like those provided by Binances itself even though it might take some time before all operations affected by this development return back online again .
Conclusion
In conclusion , despite losing one major partner , it seems that binance has already started looking for alternative solutions so traders can continue accessing their services without interruption ensuring that there will be no disruption caused by third parties or banks pulling out support from such activities regardless if they’re carried out legitimately or not since most governments still don’t recognize digital currencies as legal tender yet but this doesn’t mean they won’t take steps towards regulating these markets eventually allowing more people access them safely while protecting everyone involved including investors who choose this form investment opportunity available today .