Wise and Deel Halted Support for Binance Withdrawal

At the end of 2023 financial service giants Wise (previously known as TransferWise) and Deel announced discontinuing their support for Binance, a leading digital asset exchange. This decision has significant implications, particularly for global contractors and freelancers relying on Deels' withdrawal to Binance feature to get competitive rates for their local currency. Many freelancers and contractors use Binance for easy, low-cost international payments. Now, they have to quickly adjust and look out for new, reliable ways to handle their finances in the digital world.

Why Did Wise and Deel Withdraw from Binance?

• Wise's Regulatory Compliance: As per their statement, Wise, an international money transfer service, cited legal constraints preventing transactions with digital asset exchanges outside the regulatory purview of the UK or EU.

• Deel's Concerns with BUSD: Deel, a global payroll provider, linked their decision to regulatory uncertainties following Binance's announcement to cease supporting its stablecoin, BUSD, post-February 2024.

The Impact on Users

Let's consider the experience of a contractor in Argentina being paid by a U.S. company. Previously, the payment process through Deel to Binance was straightforward:

1. Direct Withdrawal to Binance: Funds moved seamlessly from Deel to Binance.

2. Conversion from BUSD to USDT: The stablecoin BUSD was exchanged for USDT.

3. P2P Exchange to Argentine Pesos: USDT was then traded for local currency.

However, the post-Deel-and-Binance landscape complicates this process - here is one of the many flows contractors go through:

1. Withdraw to Wise: Funds are transferred to Wise without fees.

2. Currency Conversion in Wise: USD is converted to EUR, incurring potential losses and small commissions.

3. Transfer to Nexo: Users move EUR to Nexo via SEPA transfers.

4. Conversion to USDT in Nexo: Euros are exchanged for USDT, with fees varying based on Nexo's rates.

5. USDT Transfer to Binance: USDT is sent to Binance using the low-cost BEP20 network.

6. P2P Trading in Binance: Finally, USDT is exchanged for Argentine Pesos.

This new, multi-step process increases complexity, eroding 3-5% of users' earnings through various fees and conversion rates, as well as hours of work and over a week of delays.

Global Payment Systems in Transition: The Rise of Stablecoins

The international payment landscape is undergoing a significant transformation, partly driven by the growing preference for stablecoins and other digital currencies. This shift towards digital assets represents not just a technological evolution, but also a response to a global demand for more stable, inclusive financial solutions. The decision by platforms like Wise and Deel to withdraw support for certain digital assets has been a considerable setback for global workers. These platforms previously offered vital gateways for users who relied on them for easy, low-cost international transactions. Their withdrawal underscores a gap in the market that needs to be filled, particularly for those who are unbanked or face economic instability.

Stablecoins, such as USDC, have been created with stability and inclusivity in mind. They offer a unique blend of the reliability of traditional fiat currencies with the innovative edge of digital assets. Stablecoins provide stability in economies experiencing volatility and are crucial in extending financial services to those without access to traditional banking. As the demand for digital currency transactions increases, stablecoins will play an even more crucial role.

Embracing the Future with Mural

For those engaged in international transactions, turning to stablecoin-based solutions like Mural offers substantial benefits. Avoid a complicated multistep process that takes time and exorbitant fees; use Mural for a 2-step process, get paid, and convert to your local currency. Our platform ensures real-time international payments with very low transaction fees, providing access to a variety of stablecoins. This not only streamlines the payment process but also safeguards against unexpected fees.

To experience the future of international transactions, we invite you to book a demo with Mural. Revolutionize your payment strategies and embrace the efficiency and security of digital dollar international payments with us.