Credit card payment processor Checkout.com has terminated its relationship with Binance amid myriad regulatory actions and inquiries from partners. The termination became effective on Thursday.
In response, Binance said it disagreed with Checkout.com’s reasons and was considering legal recourse. The termination follows a decision from Paysafe, another European provider, to end dealings with Binance.
Checkout.com Starts and Ends Relationship in Similar Circumstances
According to a Binance spokesperson, the ending of its deal with Checkout would have “no impact on our services.” Despite Checkout’s claims, the exchange’s spokesperson said it had come a long way in building a robust compliance program.
Irrespective, Binance still faces a lawsuit from the US Securities and Exchange Commission (SEC) accusing it of deceiving regulators and mishandling customer funds. The exchange also faces a probe from French authorities over “aggravated” money-laundering charges and was forced to exit several regions after failing to meet compliance standards.
Its partnership with Checkout.com got off to a rocky start in 2020 when a crime syndicate exploited the absence of the 3-D Secure system to execute $10 million in trades on Binance.
3-D Secure prevents credit card fraud by protecting customer information and is now mandatory under the European Payment Services Directive. Since then, Checkout.com has helped Binance process billions, including $2 billion in monthly crypto transactions during the 2021 bull market.
Payment Provider Departures Affect Revenue
The termination of the Checkout deal comes a few days after the exchange stopped its own Bifinity platform it operated with Paysafe and Checkout. The service helped businesses accept crypto payments.
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Binance CEO Changpeng Zhao confirmed on Friday company policy that no employee has insider access to Binance’s futures trading desk. In June, the US Commodity Futures Trading Commission sued Binance for giving US firms access to the trading desk without registering its business with the agency.
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