Binance, the world’s leading cryptocurrency exchange company, has suffered a severe blow after being suspended by global payment processor Checkout.com amid rising regulatory compliance worries.
According to Forbes, Binance, which was once Checkout.com’s top client, had transactions worth more than $2 billion in a single month in 2021. Guillaume Pousaz, CEO of Checkout.com, made the decision to sever his ties with the exchange, citing “reports of regulatory actions and directives within pertinent jurisdictions” as well as ” queries from partners.”
Concerns about Binance’s efficacy in administering anti-money laundering procedures, sanctions, and overall compliance controls prompted the decision.
Binance indicated its intention to file legal action in response to Checkout’s rationale for contract termination. The company spokesman underscored the steps made to develop a comprehensive compliance procedure, with a view of fostering more trust with authorities and partners in the future.
The discontinuation of the partnership with Binance presents a substantial blow to the crypto exchange. The report highlights that Checkout’s abrupt action carries significant implications for the exchange’s operations.
Several crypto firms, including Genesis Global Trading (a part of the crypto conglomerate Digital Currency Group), FTX, BlockFi, Three Arrows Capital, Celsius Network, and Voyager, have recently filed for Chapter 11 bankruptcy protection.