Transactions via EU’s SEPA Network have been temporarily suspended by Binance

Binance, a cryptocurrency exchange has recently been targeted by the growing regulatory assault on virtual currencies, as the crypto exchange has been forced to stop accepting euro bank deposits from one of Europe’s major trading platforms.

Binance said in late June it would no longer operate clients in Ontario after the province’s authority introduced additional compliance standards that the crypto exchange found to be prohibitive. Binance Markets Limited, Binance’s only UK-regulated business, was prohibited from functioning in the UK by the Financial Conduct Authority a few days later.

As a result, Barclays has barred its clients from using their credit and debit cards to make payments to the exchange. It announced in an email to subscribers on Tuesday that it would temporarily block euro bank deposits from one of Europe’s major payment networks. Customers will no longer be able to deposit payments through the Single Euro Payments Area, or SEPA, systems starting at 8 a.m. UTC (1:30 p.m. IST) on Wednesday, according to the email. The adjustment was made due to “events beyond our control,” according to the email exchange. “Any deposits attempted via SEPA in the meantime will be returned within 7 working days. SEPA withdrawals are unaffected by this suspension”, Binance stated.

The Binance Exchange website on a laptop computer arranged in Dobbs Ferry, New York, U.S., on Saturday, Feb. 20, 2021. Photographer: Tiffany Hagler-Geard

Consumers may transmit euros across three dozen nations via the network, which is a European Union effort aimed at harmonizing euro payments across the continent. SEPA is typically accessed by Binance via payment facilitators. Binance has lately been subjected to a slew of regulatory crackdowns throughout the world.

On Friday, Thailand’s financial authority filed a criminal complaint against the cryptocurrency exchange for operating a digital asset business without a license, and the company was recently prohibited from carrying out regulated operations in the nation by the UK’s financial watchdog. Binance was operating unlawfully in Japan, according to the country’s authority. In April, Germany’s watchdog warned that selling tokens linked to equities may result in a fine.

Binance had already obtained SEPA access through other payment intermediaries, but the current restriction is part of a larger block that prevents Binance users from transferring cash to the exchange from traditional banks and other financial institutions. However, Binance stressed that the change is just “temporary,” and that users may still transfer cash via the SEPA system.