The London-based credit card processing firm Checkout.com has officially severed ties with Binance. The decision to end this partnership stems from concerns related to regulatory breaches and potential money laundering issues.
In light of the statement made by Checkout, Binance strongly expressed its disagreement with the credit card firm’s claim of contract termination. Binance is also actively exploring potential avenues for legal recourse against Checkout’s action, as reported by Forbes.
The market quickly stirred with the speculation after Guillaume Pousaz, the CEO of Checkout, sent two letters to Binance on August 9 and 11. In the initial letter, Pousaz attributed the termination of their partnership to “regulatory actions and orders from relevant jurisdictions” as well as “partners inquiries.”
Subsequently, Checkout conveyed further apprehensions through a sequence of letters, specifically addressing issues related to Binance’s anti-money laundering protocols, sanctions adherence, and compliance controls. The termination of this partnership was stipulated to take effect from August 17th.
Upon receiving the letter, Dewi Mustajab, a spokesperson for the exchange, strongly contested Checkout’s reasons for ending the contract. Binance is even contemplating potential legal recourse in response.
However, the termination of the partnership doesn’t affect Binance’s operations — users can still utilize the exchange’s on-and-off ramps seamlessly with Checkout services. It’s worth noting that the Checkout services had limited users and a relatively low number of transactions prior to the conclusion of the partnership.
In a defense of Binance, Dewi Mustajab further said, ”We have come a long way to building an industry-leading compliance program and we hope to build more trust with regulators and partners.”
Nonetheless, Binance is currently facing various legal actions initiated by regulators across many countries.
Despite this, the exchange consistently evaluates its products and services to ensure that its resources remain directed toward fundamental initiatives “that align with our long-term strategy.”
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