Binance Suspends UK Withdrawals And Deposits: What You Need To Know

Zinger Key Points
  • Paysafe discontinues product for Binance UK customers and drops Binance support due to UK regulations.
  • Binance has struggled to establish a base in the UK. It acquired a local firm in 2020 to act as its UK subsidiary.

Cryptocurrency exchange Binance has suspended deposit and withdrawal services for UK customers using bank transfers and card payments due to the cessation of support for transactions in British pounds by its local banking partner.

The company's spokesperson told Bloomberg that the team is working to find an alternative solution for affected users.

This move reflects the deteriorating conditions for the cryptocurrency industry in the UK, with banks such as HSBC Holdings and Natwest Group imposing restrictions on the amount of money that clients can transfer to digital asset exchanges.

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Paysafe, a London-based online payments company, has also decided to stop providing one of its products to Binance's customers in the UK, citing the challenging regulatory environment around cryptocurrency assets.

"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 stated.

It did not indicate whether it would stop supporting other crypto companies as well.

Paysafe stated that its UK business with Binance is relatively small. It will continue to work with the exchange in other parts of Europe and Latin America.

In contrast, Binance itself has struggled to establish a base in the UK.

The company acquired a local firm in 2020 to act as its UK subsidiary, Binance Markets Ltd.

However, the Financial Conduct Authority issued a warning against the company for lacking the relevant permissions to operate in the country.

Despite the UK government's attempt to embrace cryptocurrencies in the past year, the financial regulator has repeatedly warned investors about the risks of losing all their money when investing in digital assets. 

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Posted In: CryptocurrencyLatin AmericaNewsTop StoriesMarketsBank transfersBinance Cryptocurrency exchangeCard paymentsCrypto riskscryptoassetsDigital asset exchangesEuropeFinancial Conduct AuthorityFinancial regulatorHSBC HoldingsNatwest GroupOnline PaymentsPaysafeUK crypto industryUK customers
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