- Checkout.com ends its partnership with Binance due to regulatory concerns and compliance issues.
- Binance’s significant transactions initially boosted Checkout.com’s growth, but security disputes and fraud vulnerabilities strained the partnership.
- Facing regulations, Checkout.com reduces reliance on crypto, altering its business direction.
London-based payment processor Checkout.com has terminated its business relationship with crypto exchange giant Binance, citing regulatory apprehensions and compliance discrepancies.
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The decision, communicated through letters by Checkout.com’s CEO Guillaume Pousaz on August 9 and 11, references regulatory actions, inquiries, and concerns about Binance’s compliance controls and anti-money laundering measures. The partnership is set to officially dissolve on August 17, as confirmed by Checkout spokesperson Lewis Jones.
Previously, Binance’s extensive transaction volume had significantly contributed to Checkout.com’s success. However, security conflicts arose due to Binance’s decision not to implement Checkout.com’s 3D-Secure security function. This allowed fraudulent transactions amounting to millions on the Binance platform, drawing attention to security vulnerabilities.
As regulatory pressures escalated and other major crypto clients, like FTX, faced setbacks, Checkout.com began reconsidering its heavy reliance on the crypto sector. The company underwent internal valuation adjustments, signaling a shift away from digital assets. Reports indicate that crypto transactions now constitute only a fraction of Checkout.com’s total processing volume.
The termination highlights the growing challenges for crypto-related businesses in navigating complex regulatory landscapes. It underscores the importance of compliance and security measures in partnerships bridging traditional finance and the crypto world. While Checkout.com recalibrates its business strategy, the crypto industry must grapple with reconciling growth objectives with rigorous regulatory expectations.
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