• Checkout.com, a London-based credit card processor, has ended its partnership with Binance citing regulatory concerns.
• The termination was revealed in a report by Forbes and later confirmed by TechCrunch.
• Checkout.com cited issues such as anti-money laundering, sanctions and compliance controls as reasons for the decision.
Checkout.com Terminates Partnership with Binance
London-based credit card payment processor Checkout.com has severed ties with Binance, the world’s largest cryptocurrency exchange, according to a spokesperson. The termination was revealed in a report from Forbes and later confirmed by TechCrunch.
Reasons Behind Termination
Checkout.com, valued at $40 billion as of January 2022, cited concerns stemming from “reports of regulators actions and orders in relevant jurisdictions” as well as “inquiries from partners” as reasons for the termination. The letters also highlighted worries over Binance’s alleged issues with anti-money laundering, sanctions, and compliance controls.
Binance’s Growing List of Setbacks
The embattled giant has seen numerous setbacks over 2023, including licensure failures and regulatory crackdowns. This latest development is yet another blow to the company’s reputation which may have far reaching implications on its business operations going forward until it can regain trust amongst companies that are considering partnerships with them or using their services in some way or another .
Implications for the Crypto Industry
The decision by Checkout to sever ties with Binance could be an indicator that more corporate entities may be wary of entering into partnerships or working with crypto exchanges due to fears about regulatory scrutiny or other potential risks associated with them . This could have an impact on the wider crypto industry as it would reduce access to mainstream financial services for many companies operating within this space .
Conclusion
This news comes at a time when there is increased scrutiny on crypto exchanges operating globally , making it increasingly difficult for them to operate without running afoul of one set of regulations or another . It remains to be seen how this situation will shake out but it is likely that more corporate entities will follow suit and end their relationship with Binance if similar issues arise in future .