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Binance is considering legal action against Checkout.com when the cooperation comes to an end
Binance is contemplating the initiation of legal proceedings against Checkout.com in light of the termination of their agreement
On August 16, Binance Connect was taken off because Checkout.com stopped supporting the cryptocurrency exchange.
Cryptocurrency exchange A spokesman for Binance told Cointelegraph on August 18 that the company is exploring legal action against its former payment provider Checkout.com.
The potential legal conflict stems from letters sent to Binance by Checkout.com on August 9 and 11. According to Forbes, Checkout.com CEO Guillaume Pousaz discontinued the collaboration with Binance due to "reports of regulators actions and orders in relevant jurisdictions," as well as concerns regarding anti-money laundering, sanctions, and compliance procedures.
"We do not agree with Checkout's purported basis for termination and are considering our legal options," a Binance spokesman said in an email, adding that the exchange's on-ramp and off-ramp services are still available.
However, the crypto exchange shut down Binance Connect, a regulated crypto buy-and-sell activity, on August 16 due to the end of the business partnership. The platform, which was launched in March 2022, acted as a fiat-to-crypto payment provider, connecting crypto companies to the traditional finance system by supporting over 50 cryptocurrencies and fiat transactions. According to Forbes, Checkout.com's largest customer was Binance, which handled roughly $2 billion in transactions in a single month in 2021.
Binance's operations have been debanking in recent months, causing several of its global subsidiaries to struggle to find partners. The exchange announced in June that its euro banking partner, Paysafe Payment Solutions, will discontinue support in Europe. In June, its local branch in Australia was disconnected from the financial system without warning or consultation. Binance.US apparently struggled to recruit banking partners in the United States, and prior partners Silvergate and Signature Bank were shut down earlier this year during the banking crisis.
During an interview, Binance CEO Changpeng Zhao claimed that the continuing turmoil has spurred him to contemplate purchasing a bank.
Binance's commercial and legal issues appear to be far from ended. The US Securities and Exchange Commission sued the global exchange and its CEO on June 5 for allegedly breaking securities laws and marketing unregistered securities in the country.
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