The hard knocks are coming one after another for Binance, at a pretty incredible pace. The first big bad news was certainly the action of the FCA (the British financial authority) against one of the subsidiaries of the crypto exchange, but today, it’s downright one of its partners who is dropping Binance in the open.
Clear Junction stabs Binance in the back
The best known Bitcoin and crypto exchange continues to suffer multiple setbacks. This July 12, it’s partnership with one of its main payment processors has abruptly ended.
According to the statement from Clear Junction, which had been offering SEPA transfers to Binance users since June 2020, the termination of its services is immediate:
“[The company] Clear Junction confirms that it will no longer facilitate Binance-related payments. This decision has been made following the recent announcement by the Financial Conduct Authority (FCA) that Binance is not permitted to undertake any regulatory activity in the UK. We have decided to suspend payments in sterling and euros, and we will no longer facilitate deposits or withdrawals to or on behalf of the crypto trading platform (…)”
Clear Junction press release on stopping SEPA transfers to Binance users
A real relentlessness against Binance?
It is now clearer why Binance had to suspend its SCT offer overnight on July 7.
As mentioned above, a good part of the crypto exchange’s recent problems started with the FCA banning the activities of its subsidiary Binance Markets, as this company offers financial products derived from crypto-currencies, which are subject to regulation, unlike traditional (spot) crypto-currency exchanges which are not.
But for the time being, Clear Junction’s decision deprives all platform users of transfers, even to simply buy crypto assets. Fortunately, in a counterattack, Binance has offered zero fees on credit card purchases.
Other troubles have also surfaced for Binance on the side of its access problems, during connection saturations due to strong movements in the crypto market. Traders who feel they have been wronged have launched a class action against the platform to seek compensation.
