Checkout.com, a credit card processing company based in the United Kingdom, has reportedly severed ties with cryptocurrency exchange Binance due to regulatory concerns.
Forbes reports that the world’s largest cryptocurrency exchange by volume was informed of the company’s intention to terminate the contract due to regulatory concerns.
This could be a turning point for Binance’s regulatory matters, given that Checkout.com has served millions of customers in the United Kingdom for crypto payment processing.
The report indicates that on August 9 and 11, the credit card processing company sent two letters to the cryptocurrency exchange.
Guillaume Pousaz, the company’s chief executive officer, cited issues with Binance’s anti-money laundering, sanctions, and compliance control as the reason for the service’s discontinuation.
The letters stating that the contract would expire on August 17, 2023, detailed regulatory issues in multiple jurisdictions.
As a result, Binance is reportedly contemplating legal action against the company over the reason for the contract termination.
Recently, CZ, the exchange’s chief executive officer, stated that the platform would like to navigate carefully within the legal frameworks of various jurisdictions.
According to data from recent months, the exchange had effectively lost transactions worth approximately $400 million in the context of a grand plan to expand the crypto market to new audiences.
