Checkout.com Cuts Ties with Binance Over Compliance Concerns
Checkout.com, the renowned London-based credit card processing firm, has pulled the plug on its collaboration with the world’s largest crypto exchange, Binance. Forbes recently reported that the termination of the partnership is a consequence of growing concerns over money laundering and compliance. This move indicates a significant shift within the crypto industry as more firms prioritize regulatory compliance.
On August 9th and 11th, Checkout CEO Guillaume Pousaz communicated his decision through letters, citing regulatory actions and partner inquiries as factors contributing to the split. Significantly, the second letter underscored Checkout’s concerns regarding Binance’s anti-money laundering (AML) efforts, sanctions, and compliance controls. Consequently, the contract between the two companies ended abruptly on August 17th.
Binance Faces Mounting Challenges Amid Regulatory Scrutiny
According to the report, Checkout.com’s decision to terminate its association with Binance comes in the wake of Binance’s recent announcement regarding discontinuing its buy-and-sell crypto arm, Binance Connect—an initiative that Checkout.com previously supported.
Binance has recently faced its share of tribulations, grappling with investigations in several jurisdictions and losing support from payment providers, including European payments provider PaySafe, which ended its partnership in June. Despite the setbacks, Binance is steadfast in its commitment to building a stable compliance program and fostering trust with regulators and partners. Dewi Mustajab, the exchange spokesman, stated, “We have come a long way to building an industry-leading compliance program, and we hope to build more trust with regulators and partners. Checkout’s withdrawal would have “no impact on our services.”
However, the disconnection from Checkout.com, which previously processed billions of dollars in Binance transactions, is undeniably a significant setback for Binance. Moreover, the partnership was crucial in bolstering Checkout.com’s reputation as one of Europe’s most valuable payment companies.
The ramifications of this decision for both companies are yet to be fully realized, but it undeniably constitutes a significant development within the evolving landscape of crypto payments.
Besides the immediate effects, the termination of the partnership highlights the increasing importance of compliance and security within the cryptocurrency industry. As Binance navigates ongoing regulatory scrutiny, it must confront the challenges of rebuilding trust and preserving its market position. Meanwhile, Checkout.com must deal with the aftermath of ending its association with a previously substantial client. As the cryptocurrency industry continues to evolve, regulatory compliance and security considerations are taking center stage, shaping the future of crypto payments.
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