In a huge setback to Binance, United Kingdom based credit card processing company Checkout.com is learnt to have parted ways with the crypto exchange. According to a report from Forbes, the world’s top crypto exchange by volume had been informed by the company about the intent to terminate contract over regulatory concerns. This could likely be a new leaf in Binance’s many regulatory concerns, considering that Checkout.com served millions of people in conducting crypto payments in the United Kingdom.
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Anti-Money Laundering Concerns
According to the report, the crypto exchange received two letters from the credit card processing company on August 9 and 11. The company’s chief executive officer Guillaume Pousaz quoted issues surrounding Binance’s anti-money laundering, sanctions and compliance control as the reason for discontinuing the service. The letters, which mentioned that the contract would end by August 17, 2023, detailed concerns of regulatory issues in several jurisdictions.
In response, Binance is reportedly heading towards taking legal action against the company over the reasoning behind the contract termination. Recently, the exchange’s CEO CZ said that the platform would like to traverse carefully within the legal framework in various jurisdictions. In the context of the grand plan to expand the scope of the crypto market to newer audiences, the exchange had effectively lost, at least temporarily, transactions worth around $400 million, based on data from recent months.
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