Binance Holdings Ltd., which is considered the world’s biggest cryptocurrency exchange, has announced that it will be temporarily halting deposit and withdrawal services via bank transfers and card payments for customers in the UK. The reason behind this move is that its local banking partner has stopped supporting transactions in British pounds.
London-based online payments company Paysafe has also decided to stop offering one of its products to Binance’s UK customers. According to Paysafe, this decision was made in response to the UK regulators’ stance on crypto assets. However, Paysafe has not made it clear whether it will withdraw support for other cryptocurrency companies as well.
The recent suspension of deposit and withdrawal services by Binance for its UK customers is indicative of the deteriorating situation in the cryptocurrency sector within the country. This follows the introduction of restrictions by major banks such as HSBC Holdings Plc and Natwest Group Plc, which have imposed limitations on the amount of money their clients can transfer to digital-asset exchanges.
Despite attempts by UK politicians to adopt and promote cryptocurrency in the last year, the country’s financial regulator has issued repeated warnings to investors about the high risks associated with this asset class, including the possibility of losing all their invested funds.
Paysafe has confirmed that the proportion of its business with Binance in the UK is relatively small. However, it has stated that it will continue to work with the exchange in other regions across Europe and Latin America.
Meanwhile, Binance has faced challenges in establishing a foothold in the UK market. In 2020, the exchange acquired a local company to serve as its subsidiary in the country, operating under the name Binance Markets Ltd. However, the Financial Conduct Authority (FCA) issued a warning against the subsidiary a year later for failing to obtain the necessary permissions to operate within the UK.
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