Binance Faces Legal Challenges after Checkout.com Terminates Partnership
Binance is considering going legal after payment processor Checkout.com suddenly decided to cut ties with Cryptocurrency exchange.
Checkout.com’s messages of Termination, issued on August 9 and August 11, referring to regulatory Fears, money laundering Claims and Compliance Inquiries.
However, Binance confirms the contrary position, indicating that it does not agree with Logical exit for end.” The company is at the helm of CEO Changpeng Zhao, is seeking possible legal damages.
Despite the dissolution of the partnership, Binance maintains that user services remain unaffected and on-ramp f offDetainee facilities are operational.
The broken partnership marked the end of Binance Connect, crypto buy- Licensed selling platform for practical. Launched in March 2022, the platform facilitated transactions between cryptocurrency and traditional financial sectors. played a pivotal role role in Handling nearly 2 billion dollars in transactions for binance in one month.
This breakup exacerbates the continuation of Binance challenges. exchange he has faced difficulty Securing Partnerships international Offices due to the so-called debanking measures regulatory problems.
European and Australian branches faced abrupt terminations of banking services, and Binance had difficulty finding US banking partners. To address these issues, Zhao thought of purchase of a bank.
Binance and antimoney laundering requirements
On Friday, a Forbes editor suggested that when Binance initially introduced the Checkout.com platform in In early 2020, I neglected to integrate antimoney laundering tool, 3D-Secure.
Subsequently, Visa notified Binance of the sudden increase of The fraudulent transactions, estimated at around $10 million, occurred shortly after the platform was launched. This revelation highlights the complexity challenges Binance grappled withto shed more light on the complexities of its operational landscape.
last yearLondon-based Checkout.com has begun exploring ways to boost encryption for payment purposes.