Global payments processor Checkout.com has decided to sever ties with leading cryptocurrency exchange Binance due to mounting concerns related to regulatory issues. In the past, Binance was a major client for Checkout.com, conducting transactions worth over $2 billion within a single month in 2021, as reported by Forbes.
Guillaume Pousaz, CEO of Checkout.com, made the decision to terminate the partnership with Binance, citing regulatory actions and orders in various jurisdictions, as well as inquiries from partners. He also raised apprehensions about Binance’s compliance controls in relation to anti-money laundering and sanctions.
In response, Binance contested Checkout’s reasons for ending the contract and indicated the possibility of pursuing legal action. A spokesperson from Binance stated that the company had dedicated significant effort to establishing a robust compliance program, aiming to foster greater trust with regulatory authorities and partners.
Checkout.com had been handling Binance transactions in the range of $300 million to $400 million. The termination of the partnership was described as a significant setback for Binance in the aforementioned report.
Notably, US regulators had taken legal action against Binance and its CEO, Changpeng Zhao, in June of the current year. The regulators alleged that Binance had engaged in deceptive practices and lodged 13 charges in a federal court.
Additionally, Belgium’s Financial Services and Markets Authority (FSMA) directed Binance to cease all virtual currency services in the country with immediate effect.
In recent months, several cryptocurrency companies, including Genesis Global Trading (a subsidiary of Digital Currency Group), FTX, BlockFi, Three Arrows Capital, Celsius Network, and Voyager, have filed for Chapter 11 bankruptcy protection.
