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<p><strong>Binance has had its fights with the regulators all over the world raising compliance concerns in Checkout.com.</strong></p> 
<h2 style="text-align: center;" id="termination-of-a-once-prosperous-partnership">Termination of a Once-Prosperous Partnership</h2> 
<p>London-based payment processor, Checkout.com, has <a href="https://www.forbes.com/sites/davidjeans/2023/08/18/payment-processor-checkout-drops-binance-over-money-laundering-compliance-concerns/" target="_blank" rel="noopener noreferrer nofollow">recently terminated</a> its partnership with Binance, one of the world’s largest cryptocurrency exchanges. This move comes due to worries about money laundering and regulatory compliance. The collaboration between these two companies faced difficulties, highlighting the unpredictable nature of the cryptocurrency sector and the significance of strong security measures.</p> 
<h2 style="text-align: center;" id="unexpected-split-with-binance">Unexpected Split with Binance</h2> 
<p>Checkout.com’s CEO, Guillaume Pousaz, conveyed the decision to cut ties with Binance, their once most significant client, in letters dated August 9 and 11. The stated reasons included concerns about regulatory actions and inquiries from partners. A follow-up letter, sent just two days after the initial communication, further detailed Checkout’s unease about Binance’s anti-money laundering practices, sanctions, and overall compliance controls. This split was scheduled for August 17.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">EXCLUSIVE: Payment Processor <a href="https://t.co/t0Hpnw7meS" rel="noopener noreferrer nofollow">https://t.co/t0Hpnw7meS</a> Drops Binance Over Money Laundering, Compliance Concerns <a href="https://t.co/jaAGpNu6IT" rel="noopener noreferrer nofollow">https://t.co/jaAGpNu6IT</a> <a href="https://t.co/r5FeopJY1f" rel="noopener noreferrer nofollow">pic.twitter.com/r5FeopJY1f</a></p> 
 <p>— Forbes (@Forbes) <a href="https://twitter.com/Forbes/status/1692687854592209363?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 19, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="binance-s-response-and-partnership-s-rise-and-fall">Binance’s Response and Partnership’s Rise and Fall</h2> 
<p>Binance did not accept this decision without a response. The crypto giant disagreed with Checkout’s rationale for ending the contract and hinted at possible legal steps. Binance’s spokesperson, Dewi Mustajab, expressed their dedication to building a leading compliance program, <a href="https://walletinvestor.com/magazine/binance-becomes-first-fully-licensed-crypto-exchange-in-el-salvador" target="_blank" rel="noopener noreferrer nofollow">aiming to gain trust with regulators and partners</a>. Binance assured that their services would remain unaffected by Checkout’s choice.</p> 
<p>Initially, the partnership between Checkout and Binance was beneficial for both. In 2020, Binance aimed to establish credibility in the crypto arena, while Checkout.com sought to shift its reputation away from processing payments for adult content and gambling sites. Their collaboration changed the course for both companies. Binance gained a reliable payment processor, while Checkout experienced a surge in transaction volume.</p> 
<h2 style="text-align: center;" id="challenges-and-adjustments">Challenges and Adjustments</h2> 
<p>The collaboration had its difficulties. When Binance integrated Checkout.com’s platform in 2020, they omitted activating 3D-Secure, a crucial security feature against money laundering risks. Visa subsequently identified fraudulent transactions on Binance, totaling about $10 million, linked to this omission. Binance incurred these losses and eventually put the required security measures in place.</p> 
<p>As the landscape changed, with another major crypto client FTX falling and increased regulatory scrutiny on Binance, Checkout.com started to rethink its heavy dependence on cryptocurrencies. Recent reports indicate that the company adjusted its internal valuation twice, indicating a shift in focus.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">🟠 <a href="https://t.co/bEnNA1P2er" rel="noopener noreferrer nofollow">https://t.co/bEnNA1P2er</a> Now Parts Ways With Binance Amid Compliance Concerns <a href="https://t.co/zCVrisycj1" rel="noopener noreferrer nofollow">pic.twitter.com/zCVrisycj1</a></p> 
 <p>— Max of Crypto (@MaxofCrypto) <a href="https://twitter.com/MaxofCrypto/status/1692860946270539802?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 19, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script></p> 
<h2 style="text-align: center;" id="contemplating-legal-action-and-binance-s-ongoing-challenges">Contemplating Legal Action and Binance’s Ongoing Challenges</h2> 
<p>Binance is contemplating legal action against Checkout.com following the partnership termination. This discord stems from letters exchanged in early August, where Checkout cited regulatory concerns. Binance’s regulated crypto buy-and-sell operation, Binance Connect, was halted as a consequence.</p> 
<blockquote class="twitter-tweet"> 
 <p dir="ltr" lang="en">Binance’s woes escalate as it mulls legal action against <a href="https://t.co/VrxFK7QKld" rel="noopener noreferrer nofollow">https://t.co/VrxFK7QKld</a> post-partnership termination <a href="https://t.co/ArknFQFl7F" rel="noopener noreferrer nofollow">https://t.co/ArknFQFl7F</a></p> 
 <p>— crypto.news (@itscrypto_news) <a href="https://twitter.com/itscrypto_news/status/1692997874567594458?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">August 19, 2023</a></p> 
</blockquote> 
<p><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script><br> Binance has faced operational challenges in multiple regions, leading to difficulties in finding banking partners. The exchange’s CEO even discussed the possibility of acquiring a bank. Moreover, Binance’s legal struggles continue, with a lawsuit from the U.S. SEC over alleged securities law violations.</p> 
<h2 style="text-align: center;" id="conclusion">Conclusion</h2> 
<p>The end of the Checkout.com and Binance partnership highlights the complexities and challenges of the ever-changing cryptocurrency industry. Companies must find a balance between growth and regulatory compliance, emphasizing the need for strong security measures and adaptability in a dynamic industry.</p>

Checkout.com Ends Partnership with Binance Amidst Compliance Concerns

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