Binance considers “legal action” after Checkout.com terminates partnership

Binance is “considering our options for legal action” after Checkout.com severed ties with the company on Thursday.

“As of Aug. 16, 2023, Checkout.com is no longer servicing Binance as a payment service provider. There is no impact on our services and users can continue to use on-and off-ramps as usual,” a Binance spokesperson told Blockworks via email.

“We do not agree with Checkout’s purported basis for termination and are considering our options for legal action.”

However, Binance said that it will continue “to collaborate with regulators and partners around the world to ensure clarity and the best services and protections for our users.”

Binance is facing a lawsuit from the US Securities and Exchange Commission, alleging that the exchange — alongside the US arm, Binance.US, and CEO Changpeng Zhao — operated as an unregistered exchange and offered unregistered securities.

The company has also reportedly faced a French investigation back in June, though Binance told Blockworks that it was just an “on-site visit…by the relevant authorities.”

The crypto exchange has also exited multiple European markets, as well as pulling its application with Germany’s BaFin, citing the regulatory landscape as well as the global market.

It also exited the Netherlands and Cyprus.

Forbes first reported the news, citing letters seen by the publication.

According to reports, Binance received two letters from Checkout.com on Aug. 9 and 11 ending the relationship between the two because of regulator actions, though the second letter specifically detailed concerns about compliance, anti-money laundering and sanctions. 

Checkout.com did not immediately respond to a request for comment on the termination.

The news comes after Binance shuttered Binance Connect on Aug. 16, claiming that the move was made due to a “changing market.”

“At Binance, we periodically review our products and services to ensure that our resources continue to be focused on core efforts that align with our long-term strategy,” a Binance spokesperson told Blockworks. 

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