Global regulatory landscapes are once again proving to be a turning point for crypto companies, demanding constant adaptation to navigate shallow regulatory waters across the world, particularly in the United States.
In the latest developments, Coinbase and Circle decided to dissolve the Centre Consortium in a strategic realignment driven by demand for regulatory clarity on stablecoins, possibly as an anticipation of upcoming legislation coming from the U.S. Congress.
A legal alternative to remaining operational was also sought by Binance.US this week. The exchange announced a partnership with MoonPay featuring the dollar-pegged stablecoin Tether (USDT) as its new “base asset” for all transactions, allowing a path for users to transact in U.S. dollars while possibly sidestepping potential regulatory hurdles.
In the meantime, global Binance continues facing challenges with on and off-ramps. Almost 30 days before Paysafe ends its support for fiat transactions in Europe, its users in the region are reporting difficulties with fiat withdrawals.
In this environment, fast adaptation is more than a strategy, it’s a survival skill. For now, crypto firms dance to songs that are yet to be written.
This week’s Crypto Biz explores the latest on Binance’s global on-ramps and off-ramps, Coinbase-Circle re-alignment, Shopify’s take on USDC and China’s blockchain data exchange.
Binance limits withdrawals in Europe, cites payment processor issues
Customers of crypto exchange Binance are allegedly facing troubles with fiat withdrawals in Europe due to issues related to Single Euro Payments Area (SEPA) transfers. The news comes a few months after Binance informed users that its euro banking partner, Paysafe Payment Solutions, would discontinue support for the crypto exchange by Sep. 25. After this date, users will have to update banking information and may be required to accept new terms and conditions to continue using SEPA services, the exchange said. Meanwhile, in the United States, Binance.US announced a new partnership with crypto payments firm MoonPay to make the dollar-pegged stablecoin Tether (USDT) its new “base asset” for all transactions, allowing a path for users to transact in U.S. dollars. Binance.US recently suffered a breakdown with its banking partners in the country, which saw fiat deposits on the exchange disabled since June.
Today, we’re excited to introduce a new $USD on-ramp!