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<p class="is-style-lead">Binance is considering legal recourse after payment processor Checkout.com abruptly decided to cut ties with the crypto exchange.</p> 
<p>Checkout.com’s letters of termination, issued on Aug. 9 and Aug. 11, allude to regulatory concerns, money laundering allegations, and compliance inquiries.</p> 
<p>Binance, however, asserts a contrary stance, stating that it does not agree with Checkout’s “rationale for termination.” The firm, under the helm of CEO Changpeng Zhao, is reportedly pursuing potential legal remedies. </p> 
<p>Despite the partnership dissolution, Binance emphasizes that user services remain unaffected and on-ramp and off-ramp facilities are operational.</p> 
<p> You might also like: <a href="https://crypto.news/binance-connect-winds-down-cites-shift-in-market-dynamics/" rel="noopener noreferrer nofollow"> Binance Connect winds down, cites shift in market dynamics </a> </p> 
<p>The severed partnership has marked the end of Binance Connect, a crypto buy-and-sell platform licensed for operation. Launched in March 2022, the platform facilitated transactions between the <a href="https://crypto.news/learn/no-stupid-questions-whats-a-crypto-token-anyway/" rel="noopener noreferrer nofollow">cryptocurrency</a> and traditional financial sectors. It played a pivotal role in handling approximately $2 billion in transactions for Binance in a single month.</p> 
<p>This breakup further exacerbates Binance’s ongoing challenges. The exchange has faced difficulty securing partnerships across its international offices due to so-called debanking measures and regulatory issues. </p> 
<p>European and Australian branches encountered abrupt banking service terminations, and Binance.US struggled to find U.S. banking partners. To address these issues, Zhao <a href="https://www.coindesk.com/business/2022/11/02/binance-ceo-zhao-considering-buying-banks-report/" target="_blank" data-type="link" data-id="https://www.coindesk.com/business/2022/11/02/binance-ceo-zhao-considering-buying-banks-report/" rel="noopener noreferrer nofollow">contemplated</a> the purchase of a bank.</p> 
<h2 class="wp-block-heading" id="binance-and-anti-money-laundering-requirements">Binance and anti-money laundering requirements</h2> 
<p>A Forbes editor suggested Friday that when Binance initially introduced Checkout.com’s platform in early 2020, it neglected to incorporate the essential anti-money laundering tool, 3D-Secure.&nbsp;</p> 
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   <p lang="en" dir="ltr">When Binance launched Checkout’s platform in the first half of 2020 it did so without implementing the anti-money laundering tool 3D-Secure. Shortly after launch Visa alerted them to a flood of fraudulent transactions on Binance — approximately $10 million</p>— Iain Martin (@_IainMartin) <a href="https://twitter.com/_IainMartin/status/1692545338911904255?ref_src=twsrc%5Etfw" target="_blank" rel="noopener noreferrer nofollow">August 18, 2023</a> 
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<p>Subsequently, Visa notified Binance about a surge of fraudulent transactions, estimated to be around $10 million, shortly after the platform’s launch. This revelation underscores the intricate challenges Binance has grappled with, further illuminating the intricacies of its operational landscape.</p> 
<p>Last year, London-based Checkout.com began <a href="https://crypto.news/checkout-com-to-launch-crypto-payment-products-amid-bearish-market/" data-type="link" data-id="https://crypto.news/checkout-com-to-launch-crypto-payment-products-amid-bearish-market/" rel="noopener noreferrer nofollow">exploring</a> ways to further advance crypto for payment purposes.</p> 
<p> Read more: <a href="https://crypto.news/binance-files-order-against-secs-fishing-expedition/" rel="noopener noreferrer nofollow"> Binance files order against SEC’s ‘fishing expedition’ </a> </p>

Binance contemplates legal action following breakup with Checkout.com

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