Checkout.com, a payment processor, abandons Binance due to regulatory worries
Global payments processor Checkout.com has decided to end its relationship with leading cryptocurrency exchange Binance due to increasing concerns related to regulatory issues. Binance was previously one of Checkout.com’s largest clients, with transactions exceeding $2 billion in a single month in 2021, according to Forbes.
Checkout.com’s CEO, Guillaume Pousaz, terminated the company’s association with Binance, citing “reports of regulators’ actions and orders in relevant jurisdictions” and “inquiries from partners” as reasons for the decision. Additionally, concerns were raised regarding Binance’s anti-money laundering, sanctions, and compliance controls.
Binance, however, disagreed with Checkout.com’s justification for ending the contract and stated that it was considering legal action. A spokesperson for Binance emphasized their commitment to building a leading compliance program and gaining trust with regulators and partners.
Checkout.com had been processing between $300 million and $400 million worth of Binance transactions. This move is considered a significant setback for Binance, especially in the context of ongoing regulatory challenges, including a lawsuit by US regulators against Binance and its CEO Changpeng Zhao, alleging deceptive operations and filing 13 charges in federal court in June of the same year.
