Legal Action Contemplated by Binance Following Termination of Partnership with Checkout.com
On August 17, Binance, the world's largest cryptocurrency exchange, received notification from payment processor Checkout.com about the termination of their contract due to regulatory concerns.
However, according to Forbes' report, Binnace expressed disagreement with Checkout's grounds for contract termination and mentioned potential legal action.
Binance spokesperson Dewi Mustajab stated, 'We've made significant strides in developing a top-tier compliance program and aspire to enhance trust with regulators and partners.' Mustajab added that the contract termination by Checkout would not affect Binance's services."
The London-based credit card processing company, Checkout.com, which had handled billions in crypto transactions for Binance clients, terminated its contract with the crypto giant as conveyed in letters sent to Binance on August 9 and 11.
The initial letter referred to "reports of regulator's actions and orders in relevant jurisdictions" and "inquiries from partners" as reasons for the termination.
Another letter was sent two days after the first raised concerns about Binance's anti-money laundering, sanctions, and compliance controls, setting the termination date as August 17, 2023.
Checkout.com swiftly severed ties with Binance following the closure of Binance Connect, the exchange's business-oriented cryptocurrency trading division. Checkout.com has supported this service since its launch in March 2022.
In March 2022, Checkout.com and PaySafe partnered with Binance to aid in the launch of Bifinity (later renamed Binance Connect), a fiat-to-crypto payments platform designed to connect businesses, merchants, and users with the cryptocurrency realm.
The platform enabled merchants to accept cryptocurrency payments
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