Cryptocurrency exchange Binance has suspended sterling transactions for its UK resident users. The platform cites the withdrawal of its banking partner Paysafe, which is facing a difficult regulatory climate in the UK. The two companies will continue to work together in other countries.
Binance Suspends UK Pound Trading
Users of Binance in the UK are facing new restrictions. According to our colleagues from Bloomberg, the world’s largest cryptocurrency exchange has suspended sterling withdrawals and deposits for its UK resident users. This restriction concerns both transactions via credit card and via bank transfer.
The suspension of transactions in pounds sterling on Binance UK will come into force on May 22. However, new Binance users have already been subject to this restriction since March 13. The deposit and withdrawal of other fiat currencies are not affected.
Binance also communicated the reason for this suspension. The cryptocurrency platform notably made it known that it’s his partner Paysafe which decided to stop offering crypto-related services in the UK. In a statement, Paysafe said the tough cryptocurrency regulatory environment in the UK leaves him with no choice.
We have concluded that the UK cryptocurrency regulatory environment is too difficult to offer this service at present, and we prefer to take this decision on the side of caution.
Paysafe
This is not the first time that users of Binance are subject to restrictions due to the whims of a banking partner of the exchange. A few weeks ago, Signature Bank friends end of treatment SWIFT transactions below $100,000.
Binance and PaySafe reassure their users
The new restriction imposed on users of Binance on British soil will not have a strong impact on the activity of the exchange. Indeed, the share of customers affected by this restriction does not exceed 1% of Binance customers. Also no worries on the side of paysafe. The banking institution stated that its activity in connection with Binance in the UK is low.
The two companies do not intend to break their partnership. Outside the UK, paysafe will continue to provide its services to users of Binance. On British soil, however, Binance will have to find another partner. The platform is aware of this and has promised to do what is necessary to ensure that its British customers have access to all services as soon as possible.
The suspension of sterling trading on Binance in the UK is indicative of poor regulation of the cryptocurrency industry in the country. The first victims are undoubtedly British citizens deprived of easy access to digital assets. As for Binance, the platform continues to operate smoothly outside of crypto-unfriendly territories.
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