Checkout.com terminates Binance payment processing service

London's credit card processing firm, Checkout.com, which expanded its operations by facilitating numerous crypto transactions for Binance clientele, has unexpectedly terminated its contract with the crypto behemoth, according to information obtained by Forbes.

CEO Guillaume Pousaz of Checkout.com conveyed the decision through a sequence of letters dated August 9 and 11, directed at Binance. The termination was attributed to factors such as "reports of regulators actions and orders in relevant jurisdictions" and "inquiries from partners," as stated in the initial letter. A subsequent letter, sent just two days after the first and disclosed to Forbes, cited additional concerns encompassing Binance's anti-money laundering protocols, compliance controls, and sanctions adherence. This led to the final termination date set for August 17. A spokesperson for Checkout, Lewis Jones, confirmed the termination of their partnership with Binance to Forbes.

In response, Binance expressed disagreement with Checkout's reasoning behind ending the contract and even hinted at potential legal action. Dewi Mustajab, a spokesperson for Binance, communicated that despite the severance with Checkout, the company remains committed to bolstering its compliance efforts and cultivating better relations with regulators and partners. She emphasized that Checkout's departure would not impact Binance's service continuity.

The abrupt termination of ties between Checkout.com and Binance came after Binance's recent announcement to discontinue Binance Connect, its cryptocurrency trading platform for businesses to accept digital payments. This service was supported by Checkout, according to an individual familiar with the arrangement. However, Mustajab indicated that the service had a limited user base and transaction volume.

Checkout.com, which has been handling approximately $300 million to $400 million in Binance transactions over the past months, has joined a growing list of payment service providers distancing themselves from Binance due to the ongoing investigations across multiple countries. However, Checkout disputed the mentioned transaction figures as being inaccurate and overstated. Binance has faced legal action from two U.S. agencies for alleged fraud and money laundering, leading to its exit from various jurisdictions. Notably, European payments provider PaySafe ended its collaboration with Binance in June.

The decision by Checkout.com to sever ties with Binance carries substantial implications for the crypto exchange, especially considering Binance's instrumental role in propelling Checkout to prominence in Europe. Binance was once Checkout's largest client, contributing to processing nearly $2 billion worth of Binance transactions in a single month of 2021, according to an individual with direct knowledge. This surge in business significantly boosted Checkout's revenue and culminated in a massive $1 billion funding round in the past year, valuing the company at $40 billion and elevating founder and CEO Guillaume Pousaz to one of Europe's wealthiest individuals. You can read more here

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