According to Forbes, Checkout.com, a credit card processing company based in London, recently terminated its contract with Binance. The company had previously expanded its business by processing billions of dollars in crypto transactions for Binance’s clients. However, this collaboration has now come to an end.
Regulatory Pressures Continue to Hit Binance
Checkout’s CEO, Guillaume Pousaz, sent two letters to Binance on August 9th and 11th, announcing the termination of their partnership. The decision to end the partnership was made due to concerns arising from reports of actions and orders taken by regulators in relevant jurisdictions, as well as inquiries received from partners.
A second letter, sent two days after the first, cited additional concerns over Binance’s anti-money laundering, sanctions, and compliance controls. The termination was effective as of August 17th. A spokesperson for Checkout, Lewis Jones, confirmed that the company had indeed ended its contract with Binance.
In response to Checkout’s decision to terminate their contract, Binance stated that it disagreed with the reasons for the termination and was considering taking legal action.
A spokesperson for Binance, Dewi Mustajab, stated that the company had made significant progress in building an industry-leading compliance program and hoped to continue building trust with regulators and partners. Mustajab also added that Checkout’s withdrawal would not have any impact on Binance’s services.
Checkout.com recently ended its partnership with Binance, following the crypto exchange’s decision to discontinue Binance Connect, its buy-and-sell crypto arm that facilitated businesses in accepting crypto payments.
According to a source familiar with the arrangement, Checkout had supported this service. However, Binance’s spokesperson, Dewi Mustajab, stated that the service had only a small number of users and transactions.
Checkout.com, a payment provider that has recently been processing between $300 million and $400 million in transactions for Binance, according to a knowledgeable source, is the latest company to end its partnership with the crypto giant. This decision comes as Binance faces investigations in several countries.
