Checkout.com cuts ties with Binance, which is mulling legal action in response
Credit cards payments processor Checkout.com, is no longer servicing Binance, the world’s largest crypto exchange, a spokesperson from the exchange told TechCrunch.
“There is no impact on our services and users can continue to use on-and off-ramps as usual,” the Binance spokesperson added.
The London-based Checkout.com, which was valued at $40 billion in January 2022, terminated the relationship earlier this month through a pair of letters, according to a report from Forbes. TechCrunch reached out to comment from Checkout.com but did not receive a reply at the time of publication
The two letters, sent two days apart, cited “reports of regulators actions and orders in relevant jurisdictions” and “inquiries from partners,” the article said. It also added that Checkout had concerns over Binance’s issues it alleged the company has with anti-money laundering, sanctions and compliance controls.
Binance’s spokesperson said it does not agree with “Checkout’s purported basis for termination and are considering our options for legal action.” Adding that it remains “committed to continuing to collaborate with regulators and partners around the world to ensure clarity and the best services and protections for our users.”
The relationship ending also comes a few months after the U.S. Securities and Exchange Commission filed 13 charges against Binance and its CEO Changpeng Zhao for allegations including lying to regulators about its operations and securities violations.
Earlier this week, Binance announced it was shutting down its own crypto payments service, Bifinity, which it launched in March 2022. The buy-and-sell service shut on Wednesday.
Separately, Binance also disabled its Binance Connect service on Tuesday to align with the exchange’s efforts “to focus on its core businesses,” according to a tweet by Biswap, a decentralized exchange on the BNB Smart Chain.
Binance Connect’s original mission was to be the dedicated fiat-to-crypto on-ramp between Binance and other blockchain-based platforms. It provided support for a number of cryptocurrencies and traditional payment rails like Visa and Mastercard.
