Bitcoin exchange a Binance Connect official informed the media on August 18 that the company is thinking about taking legal steps against Checkout.com, which served as its old payment processor.
The letters that Checkout.com and Binance Connect wrote to one another on August 9 and August 11 are what may lead to a legal battle. In response to “reports on the decisions and activities of regulators in the relevant jurisdictions,” as well as worries against money laundering, compliance measures, and sanctions, Guillaume Pousaz, Checkout.com’s CEO, has severed ties with Binance.
Binance Connect All Set To Launch Into A Legal Battle
Via an email, a representative for Binance Connect clarified that on and off-ramp services are still available and said that they do not agree with Checkout’s tainted basis regarding the termination and have been considering their legal options.
However, the exchange of cryptocurrency led to Binance Connect shutting down, a licensed crypto buying-and-selling activity, on August 16 as a result of the commercial agreement being terminated. The platform, which was introduced in March last year, acted as a fiat-to-crypto payment provider, connecting crypto companies with the established financial system by supporting more than 50 fiat transactions and cryptocurrencies. Forbes claims that in 2021, Binance Connect was Checkout.com’s top customer, moving almost $2B in transactions within one month. Over the last several months, Binance’s operations have been debunking, which has made it difficult for some of its international subsidiaries to obtain partners. The exchange said in June that PPS, a partner in euro banking, will stop providing service in Europe. Its branch in Australia was abruptly disconnected from the financial system around June without prior notice or discussion. According to reports, Binance.US in the US had trouble obtaining sponsors, and its previous partners Signature Bank and Silvergate had been shut down at the beginning of this year during the banking crisis.