Binance and Part Ways due to Money Laundering Flags

bitcoin payment system cryptocurrency payment gateway payment gateways Binance, a premier credit card payment processor, has officially ceased its association with the crypto giant, Binance. This decision, effective last Thursday, has added to Binance’s increasing roster of challenges with partners and regulatory bodies.

Background of the Termination 

Despite Binance’s assertion that the cessation with will not hamper its services, the termination mirrors a similar move by Paysafe, another prominent European payment provider. The exchange’s representative emphasized their rigorous efforts in fortifying a compliance program, suggesting that they’ve evolved significantly in this area.

Nevertheless, the shadows of legal complications linger. Binance is currently in the US Securities and Exchange Commission (SEC) crosshairs. Accusations include misleading regulators and not adequately safeguarding customer finances.

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Furthermore, the exchange is under scrutiny from French regulators concerning grave money laundering allegations. That has even resulted in Binance retreating from specific global regions due to non-compliance with prevailing standards.

A Tumultuous Partnership 

The collaboration between Binance and had its challenges from the onset. In 2020, malefactors capitalized on the nonexistence of the 3-D Secure system, making unauthorized trades worth $10 million on Binance.

The 3-D Secure system, pivotal in thwarting credit card scams, has become obligatory under the European Payment Services Directive. Notwithstanding this glitch, played a pivotal role in aiding Binance’s financial operations, processing a staggering $2 billion during the 2021 crypto surge.

Further Complications for Binance 

In a related development, Binance recently halted its Bifinity platform—a cooperative venture with Paysafe and This platform was instrumental for businesses keen on accepting crypto payments.

Moreover, Changpeng Zhao, Binance’s CEO, clarified company policies last Friday, stressing the absence of insider trading at Binance’s futures trading desk. That follows a lawsuit in June by the US Commodity Futures Trading Commission, which claimed Binance granted US corporations access to its trading desk without the necessary registration.

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