Ends Binance Partnership

London-based credit card processing company has severed ties with cryptocurrency exchange giant Binance, a move that marks a significant rupture in their once-thriving partnership. The decision comes amidst increasing regulatory scrutiny and investigations surrounding Binance’s operations in various countries. Split

CEO Guillaume Pousaz of delivered the news through a series of letters to Binance on August 9 and 11. Citing “reports of regulators actions and orders in relevant jurisdictions” as well as “inquiries from partners,” Pousaz expressed concerns over the implications of their association with Binance. A second letter, sent two days later, highlighted additional anxieties related to Binance’s anti-money laundering, sanctions, and compliance controls. The contract termination was set for August 17, a spokesperson confirmed.

Binance responded to the abrupt ending of their partnership, expressing disagreement with Checkout’s rationale and revealing their contemplation of legal action. The exchange emphasized their dedication to building a robust compliance program that can foster trust with regulators and partners, maintaining that Checkout’s withdrawal would not affect their services.

The fracture is not only a blow to Binance’s operations but also a remarkable shift in the dynamics of their collaboration. Binance had been a pivotal contributor to’s remarkable growth, facilitating transactions that peaked at approximately $2 billion within a single month in 2021. This partnership played a pivotal role in’s $1 billion funding round, which valued the company at $40 billion.

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Controversy at Inception

However, their partnership was marred by controversy early on. Binance launched’s platform in 2020 without implementing the 3D-Secure security feature, designed to mitigate money laundering risks. Binance’s decision to disable this security feature led to a flood of fraudulent transactions, which Visa detected and reported to Binance subsequently shouldered the financial losses and introduced the 3D-Secure measures.

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Despite the rocky start, the collaboration between the two entities was instrumental in boosting’s trading volumes. Nevertheless, the recent decision to terminate the partnership underlines the challenges Binance faces as it grapples with regulatory investigations and strives to maintain its reputation within the cryptocurrency ecosystem.