- Payment operator Checkout has ended its partnership with Binance.
- The reason for the termination was “regulatory reports and sanctions,” Forbes writes.
- Binance disagrees with Checkout and intends to challenge the decision in court.
British credit card company Checkout has refused to cooperate with cryptocurrency exchange Binance.
This was reported by Forbes, citing written statements from the firm and comments from both parties.
According to the publication, Checkout CEO Guillaume Pouza contacted Binance representatives in August 2023.
In official letters, he announced the termination of the partnership, citing “reports of actions and orders from regulators in the relevant jurisdictions” and “inquiries from partners.”
Guillaume Pouzat also mentioned additional concerns about money laundering and sanctions against Binance.
Speaking to Forbes, Checkout spokesman Lewis Jones confirmed that the company had terminated the contract.
In response, Binance told Forbes that it disagreed with Checkout’s arguments about the reasons for the termination of the contract. It is considering legal action.
“We’ve come a long way to create an industry-leading legal compliance program. We look forward to building trust with regulators and partners,” Binance spokesperson Devi Mustajab said in a statement.
The dissolution of the partnership follows the cryptocurrency exchange’s decision to abandon Binance Connect.
The service in question has been linked to Checkout, a person familiar with the terms of the agreement told Forbes.
According to reports, Checkout processed about $2 billion worth of Binance transactions per month in 2021.
However, all this time the service has been operating without the 3D-Secure feature, which provides additional security safeguards and reduces money laundering risks.
Binance executives pushed to disable 3D-Secure to increase trading volume and lower barriers for customers to transfer funds, three people familiar with the decision told Forbes.
Presumably, Binance’s refusal to deploy security measures made the Checkout platform vulnerable to credit card fraud.
In June 2023, payment provider Paysafe ended its partnership with Binance in Europe.
Earlier we told you about cryptocurrency exchanges leaving the Netherlands, Cyprus, Canada and several other countries.
Cryptocurrency exchanges are leaving the Netherlands, Cyprus, Canada and several other countries.