Binance, the world's largest non-custodian crypto exchange, will no longer be able to process withdrawals and deposits for its UK clients after its local banking partner terminated its operating agreement amid chaos in the crypto industry.
Key Takeaways
- Binance will discontinue withdrawals and deposits of sterling (GBP) as its local banking partner ends the relationship.
- Withdrawals and deposits are no longer available for new users and will be completely scrapped for existing users on May 22.
- This update doesn't affect other Binance.com in other accepted currencies and payment methods.
A Clearer Picture
Binance said in an email sent to users on March 13 it will no longer be able to process withdrawals and deposits in GBP starting May 22. The company said the change impacts less than 1% of its users, who will still be able to access their balances.
Binance told customers that it doesn't affect their accounts and that certain functionalities remained unchanged.
“In the meantime, all methods of depositing and withdrawing other fiat currencies as well as buying and selling crypto on Binance.com remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance, and buying and selling crypto directly via credit or debit card,” a spokesperson told multiple news outlets.
Cause For Sudden Cessation
According to Paysafe, the online payment company that banks Binance's GBP transactions, the sudden halt results from the regulatory purview on cryptocurrency.
“We have concluded that the UK regulatory environment in relation to crypto is too challenging to offer this service at this time and so this is a prudent decision on our part taken in an abundance of caution,” Paysafe said in a statement.
Binance’s Regulatory Battle in The UK
Binance has been in a battle with the regulators in the UK ever since it launched its crypto service in 2020 with no restrictions.
In June 2021, a year after in launched its trading arm in the region, the UK's Financial Conduct Authority warned of Binance’s operation, saying it wasn't “permitted to undertake any regulated activity.”
That led to the company’s partnership with Paysafe—a UK-regulated company—to enable deposit and withdrawal through the SEPA, a payment network, and Faster Payment Services (FPS).
It's unclear whether the exchange can find another company to help revive its services.
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