London-based credit card processing company Checkout.com has terminated its contract with Binance, a cryptocurrency exchange that was once a major customer for Checkout. The decision comes as regulators worldwide have increased scrutiny of Binance, with Checkout citing regulatory actions, joint investigations, anti-money laundering measures, sanctions, and compliance concerns as reasons for terminating the contract.
The CEO of Checkout.com, Guillaume Pousaz, communicated this decision to Binance through a series of letters, and the termination date is set for August 17. A spokesperson for Checkout confirmed that the contract had expired. However, Binance disagrees with the grounds for termination and is considering legal action. Binance’s spokesperson stated that the termination would not impact the quality of its services.
Binance played a crucial role in Checkout.com’s growth by processing billions of dollars of crypto transactions through its payment processor. This partnership helped Checkout reach a valuation of $40 billion and received significant financial support, including a $1 billion funding round the previous year. The termination of the partnership marks a significant setback for Binance, as it initially helped boost Checkout’s reputation by providing a reliable payment processing platform. The collaboration between the two companies started off on a mutually beneficial trajectory, with Binance providing Trading volume to Checkout and Checkout facilitating Binance’s expansion into the payment processing space.
Difficulties arose when Binance launched Checkout.com’s platform 3D-Secure, a Security feature aimed at reducing money laundering risks, from the app. This decision resulted in significant losses and made the platform vulnerable to fraudulent transactions. Despite initial challenges, Binance remained Checkout’s largest customer and contributed to the growth of both companies. However, as regulatory pressure on Binance increased and another major crypto client experienced a surge, Checkout began reevaluating its heavy reliance on the crypto sector. Reports suggest that Checkout.com’s domestic valuation has reduced to about $9 billion due to these challenges.
For Binance, the termination of the partnership adds to the regulatory investigations and compliance concerns it is currently facing. While both companies move forward independently, the crypto industry continues to navigate evolving regulatory landscapes and its consequences for key players..
#Famous #Company #Ends #Partnership #Binance #Heres
The CEO of Checkout.com, Guillaume Pousaz, communicated this decision to Binance through a series of letters, and the termination date is set for August 17. A spokesperson for Checkout confirmed that the contract had expired. However, Binance disagrees with the grounds for termination and is considering legal action. Binance’s spokesperson stated that the termination would not impact the quality of its services.
Binance played a crucial role in Checkout.com’s growth by processing billions of dollars of crypto transactions through its payment processor. This partnership helped Checkout reach a valuation of $40 billion and received significant financial support, including a $1 billion funding round the previous year. The termination of the partnership marks a significant setback for Binance, as it initially helped boost Checkout’s reputation by providing a reliable payment processing platform. The collaboration between the two companies started off on a mutually beneficial trajectory, with Binance providing Trading volume to Checkout and Checkout facilitating Binance’s expansion into the payment processing space.
Difficulties arose when Binance launched Checkout.com’s platform 3D-Secure, a Security feature aimed at reducing money laundering risks, from the app. This decision resulted in significant losses and made the platform vulnerable to fraudulent transactions. Despite initial challenges, Binance remained Checkout’s largest customer and contributed to the growth of both companies. However, as regulatory pressure on Binance increased and another major crypto client experienced a surge, Checkout began reevaluating its heavy reliance on the crypto sector. Reports suggest that Checkout.com’s domestic valuation has reduced to about $9 billion due to these challenges.
For Binance, the termination of the partnership adds to the regulatory investigations and compliance concerns it is currently facing. While both companies move forward independently, the crypto industry continues to navigate evolving regulatory landscapes and its consequences for key players..
#Famous #Company #Ends #Partnership #Binance #Heres
