Facing "regulatory crackdown", Binance suspends Euro deposits via SEPA and expands legal supervision team

From 8am UTC on Wednesday, Binance users will no longer be able to make euro deposits through banks. However, they will still be able to fund their accounts with credit and debit cards.

Regulatory restrictions facing Binance have forced the popular cryptocurrency exchange to temporarily halt euro-denominated bank transfers, according to an email sent to customers on Tuesday.

Binance said in an email that euro deposits made through the Single European Payments Area (SEPA) have been put on hold indefinitely due to circumstances beyond the exchange’s control.

The email read: "Due to events beyond our control, we will suspend euro deposits via SEPA bank transfers from 8:00 a.m. UTC on July 7, 2021. Customers can still make euro deposits or purchase cryptocurrencies via credit and debit cards."

Binance said it is working with its partners to resolve the issue.

SEPA connects payment networks across the region and enables customers to transfer euros across borders. Binance said the move would be temporary.

Although Binance did not specify the reason for temporarily halting SEPA transfers, the decision could stem from the regulator’s aggressive action against the company.

According to Bitpush, British financial giant Barclays announced that it will no longer facilitate payments to Binance. Barclays Bank notified its customers on Monday that it has decided to stop paying Binance via credit/debit cards. The ban will take effect immediately in order to ensure the safety of customers' funds until further notice.

Previously, the UK Financial Conduct Authority warned users that Binance was not authorized to conduct cryptocurrency business in the UK.

A Binance spokesperson said the exchange was disappointed with Barclays’ “unilateral action” in blocking customer payments.

Facing increasing regulatory scrutiny in Britain, Binance said last month that customers would no longer be able to withdraw pounds from the exchange using its popular fast-payment gateway.

Binance has also faced challenges in other jurisdictions. The Cayman Islands and Thailand have challenged the exchange, while Japan has issued a warning to Binance, saying it is not registered to operate in the country.

Despite facing strong opposition from the UK, Japan, Canada and even the United States, Binance remains the world's largest cryptocurrency exchange.

Facing strict scrutiny from global regulators, Binance announced today that Binance.US has hired Manuel Alvarez, former commissioner of the California Department of Financial Protection and Innovation (DFPI), as its new chief administrative officer. Alvarez will join on July 22 and will be responsible for overseeing key control functions within the exchange, including compliance and legal aspects.

Alvarez had been with DFPI since 2019 and stepped down last month. Prior to working at DFPI, he was general counsel and chief compliance officer at point-of-sale lending platform Affirm.

“Compliance is key to building trust with our customers and regulators, which is why we hired a recognized leader in the field like Manuel,” said Brian Brooks, CEO of Binance.US.

Alvarez will "oversee key control functions within the exchange," including its compliance and legal aspects. The exchange itself has also added 110 other new employees across its regulatory, legal and customer support teams. Brooks said the exchange had only about 100 employees as of the end of May. Alvarez said in a statement that he wants to focus on digital assets.