A recent update revealed that London’s prominent credit card processor has cut ties with Binance, the world’s largest crypto exchange. The chief executive of Checkout.com, Guillaume Pousaz, wrote a letter on August 9 explaining the need to terminate the partnership with Binance.
The CEO argued that the regulatory tension battling Binance and compliance concerns had compelled the firm to end its partnership with the controversial crypto exchange. Mr.Pousaz confessed that the Checkout team had consulted its partners on the matter.
Checkout Cut Ties with Binance
In a subsequent letter issued on August 11, the CEO restated that Checkout splitted with its largest customer due to anti-money laundering and sanctions in different jurisdictions. Even though Checkout facilitated crypto transactions worth billion on behalf of Binance, the CEO confirmed the partnership termination would be effect from August 17.
The executive regretted that the Checkout team could not continue offering Binance services due to the regulatory tussle battling the crypto exchange. However, Pousaz wished the Binance team success in its endeavors.
In an exclusive interview with the Forbes, the Checkout spokesperson Lewis Jones admitted that Binance will no longer be its partner. The termination letter issued by Checkout has received mixed thoughts from the Binance team.
The troubled crypto exchange told Forbes the Binance team was dissatisfied by the ground that Checkout terminated the partnership. The Binance spokesperson Dewi Mustajab admitted that the crypto exchange had come a long way in becoming the leading compliant program.
In his admission, the spokesperson confessed that the Binance team seeks to restore trust with regulators and its partners in compliance matters.
Overview of Binance and Checkout Partnership
Mustajab confessed that parting ways with Checkout will have minimal impact on the Binance offerings. Earlier this week, the Binance team announced plans to suspend Binance Connect, a platform that Checkout supported in facilitating crypto payments. In the report, the crypto exchange lamented that the Binance Connect platform had fewer users than other Binance services.
News concerning the withdrawal of Checkout from the Binance partners has created skepticism among the community. Based on a recent monthly report, it was observed that Checkout supported Binance transactions amounting to approximately $300 million and $400 million.
Besides facilitating Binance transactions, the crypto exchange has supported Checkout to become the leading crypto payment in London. In 2021 Binance emerged as the best-performing client for Checkout after processing a transaction worth $2 billion. Interestingly the surge in Binance transactions resulted in to increase in Checkout revenue, positioning the CEO and founder among the wealthiest men in Europe.
It implies that the partnership has been of mutual benefit to the two companies. In 2020 the Binance team agreed to launch a 3D-Secure to ensure compliance and improve Checkout security.
Afterward, the Binance team suspended the 3D-Secure platform to increase the trading volume and enhance customers’ transfer of funds. Months after the winding down of 3D-Secure fraudulent transactions amounting to $10 million were conducted on the Binance platform.
The withdrawal of the 3D-Security subjected the Binance platform to financial crime risks and loss of assets. This forced the crypto exchange to incur the cost related to financial losses and later the Binance team agreed to implement the 3D-Secure security measures in late 2020.