Binance Suspends SEPA Payments Temporarily And DeFi Coins Rally

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Last Updated on 7 July 2021 by CryptoTips.eu

Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Bitcoin, which had earlier this week cracked the $35k limit again, was on the defensive after China doubled down on it’s anti-crypto stance, warning institutions in the Middle Kingdom against even doing so much as providing services to any crypto-related companies. Meanwhile Bitcoin mining equipment can be seen, stacked and unused, in many Chinese warehouses, as American miners see their earnings rise.

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Binance temporary suspends SEPA Payments in Europe

Binance has a hard time to keep their operations running in Europe and the United Kingdom. The Financial Times reported that SEPA transactions are currently suspended for an unknown period. It comes after Binance was warned by the FCA for offering derivatives in the UK. Barclays took it a step further and stopped payments to Binance made by credit or debit cards.

According to Binance, the suspension will be temporary and they were forced to take this decision. How long this will take is unknown, but last month there were multiple payment methods suspended around the world for an unknown reason.

EU citizens can still pay by credit or debit card. To trade on Binance in Europe you now have to use a broker like Bitvavo to process your transaction, buy crypto and send it to Binance. This will reduce the market share of Binance.

DeFi sees institutions enter

In the broader altcoin market, we are seeing a prolonged rally of several DeFi coins, such as Chainlink, Aave, Uniswap and Compound.

It comes as institutional investors are clearly showing interest in DeFi, which has been receiving greater coverage in the worldwide business press as of late. In order to welcome these new potential clients, coins such as Aave have now set up specialized versions of their platforms, especially for institutional investors. Aave announced Aave Pro in a webinar last week and has since seen its value rise.

China Crackdown Widens

The Wu Blockchain account on Twitter, which reports on any major blockchain development in the country, started the negative news round, stating that:

The Central Bank of China has cancelled a Beijing company that provides software services for virtual currency transactions and closed its website, no institution may provide services for virtual currency transactions.

It comes as not only Bitcoin mining equipment is for sale (on second hand sites) in abundance in China as a result of the crackdown, but, according to reporting in the South China Morning Post, miners are now getting rid of their small hydropower stations as well.

Imagine someone putting a small dam for sale in Europe or the US as a result of a Bitcoin crackdown. Can’t imagine? We neither, but the Chinese apparently used whole hydropower stations to mine Bitcoin. The future shift in hash rate will be enormous indeed.

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