- Paysafe’s sudden decision to halt EUR deposits.
- Binance assures users that it is working on solutions.
- Binance EUR users may consider making a switch.
After Binance lost its banking partner, Paysafe, European users have been hit with severe issues over fiat processing and withdrawals. This has left many questioning: is it time to leave Binance for some other exchange?
Paysafe Ditches Binance, EUR Users Panic
On Thursday, September 28, Binance confirmed it could no longer convert EUR deposits to crypto. The news comes after Paysafe, Binance’s banking partner in Europe, stopped processing its EUR transactions on Monday, September 25.
The decision has left European users without an easy and cost-effective way to send fiat to the exchange or withdraw it. Other than using credit card payments, which are costly, users are left with limited options.
Even worse, many users have been unable to exchange their crypto assets for Euros. This is because, on September 28, the convert option allowed “EUR reduce only mode,” which means that users can convert from Euros but not into Euros.
The Paysafe debacle also affected the EUR spot trading pairs. In particular, Binance has stopped offering EUR/USDT and EUR/BUSD trading pairs.
Meanwhile, Visa has also stepped back from its Binance partnership. The credit card giant stopped issuing new Visa cards in July. This means that users who don’t already have their Binance Visa card can’t get it. The Visa card is one of the few ways Binance users can spend their euros or crypto deposited to the exchange.
The troubles on Binance leave European users questioning what they can do regarding their EUR balances on Binance and whether it is time to leave the exchange.
How Do I Convert My Crypto on Binance to Euros?
If you are in the unfortunate situation of having fiat or crypto assets on Binance and want to convert them to Euros, here’s what you can do.
Although the direct withdrawal of EUR is paused on Binance, there’s a workaround. Users can transfer their crypto assets to another exchange and then withdraw fiat. Here’s a step-by-step guide on how to go about it:
- Convert EUR to Crypto
If you hold euros on Binance, you must first convert these assets to crypto. Afterward, you can send these crypto assets to another exchange.
- Select a Suitable Exchange
Choose an exchange that supports EUR withdrawals and has the cryptocurrency pairs you hold on Binance. Popular exchanges like Coinbase and Kraken are some options you might consider.
- Create an Account
If you don’t already have an account on the chosen exchange, create one. Complete the necessary KYC (Know Your Customer) verifications to ensure smooth transactions.
- Deposit Cryptocurrency
Locate the deposit section on the new exchange and generate a deposit address for the cryptocurrency you wish to transfer from Binance. On Binance, go to the ‘Wallet’ section, click ‘Withdraw,’ select the cryptocurrency, and input the deposit address generated on the new exchange.
- Sell Cryptocurrency
Once your cryptocurrency is deposited into the new exchange, navigate to the respective trading pair (e.g., BTC/EUR, ETH/EUR) and sell your cryptocurrency for EUR.
- Withdraw Euros
After selling your cryptocurrency, navigate to the withdrawal section on the new exchange, select EUR as the currency, and follow the on-screen instructions to complete the withdrawal to your bank account.
Transferring your cryptocurrencies to another exchange with EUR withdrawal services allows you to effectively bypass the current limitations on Binance, ensuring access to your funds in the Euro denomination.
On the Flipside
- The Paysafe fallout directly results from the regulatory pressure on crypto exchanges. Due to regulatory risk, banks are increasingly pulling away from crypto transactions.
- Binance’s issues underscore the need for having multiple fiat on-ramp and off-ramp channels to ensure users are not left in a bind.
Why This Matters
The ease of converting crypto to fiat and vice versa is a fundamental aspect of the crypto trading experience. Any disruption in this mechanism can alienate users, especially those new to crypto.
Read more about Binance issues in Europe:
Binance’s Troubles Brew as Euro Service Is Suddenly Suspended
Read more about Coinbase’s Base network:
Coinbase’s Base Embraces Chainlink’s Cross-Chain Protocol