June 14, 2024

Binance News | Cryptocurrency exchange stops withdrawals!

Binance, the world’s largest cryptocurrency exchange, has announced that it will suspend transactions in British pounds (GBP) for UK customers. Binance deposits and withdrawals in GBP are no longer possible.

Binance is the world’s largest crypto exchange / Image source: Nadezda Murmakova

  • Binance deposits and withdrawals in GBP are no longer possible

  • Paysafe terminates contracts with cryptocurrency exchange

  • Other payment methods are still available

The move comes in response to a decision by UK payment service provider Paysafe. This ended the built-in wallet solution for customers. Paysafe is working with Binance to finalize the current agreement in the UK “in an orderly and fair manner.”

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Binance News: Paysafe Terminates Contracts

Paysafe explained in an email:

“We have concluded that the cryptocurrency regulatory environment in the UK is currently very challenging to provide this service. Therefore, this is a cautious decision on our part.

Binance withdrawals and deposits for new customers in the UK have already been stopped on Monday. From May 22, not all customers will be able to conduct cryptocurrency transactions using GBP.

Paysafe and Binance both highlighted that the percentage of customers using Paysafe to deposit and withdraw cash in the UK is “small”. Binance put that percentage at less than one percent of users.

A spokesperson for the cryptocurrency exchange had the following to say about Binance News:

“We know our users value these services and our team is working hard to find a workaround. We will provide updates on this as soon as we are able.”

Paysafe and Binance also note that other deposit methods are still available for UK customers. This must remain so in the future.

binance payment

Paysafe will continue to be a deposit option for UK customers / Image source: Postmodern Studio / shutterstock.com

Branch network: problems with governments and restrictions on deposits

This is not the first time that Binance has had problems with governments. It is also not the first time that deposits in local currencies have been banned. The cryptocurrency exchange has already had to contend with formal requirements on several occasions.

In February, Binance suspended bank transfers in US dollars. The company did not give any reason for this move. But this may be due to the lengthy investigations by the US regulators.

The Department of Justice has been investigating Binance since 2021 on suspicion of money laundering and sanctions violations. As in the case of the recent suspension of GBP deposits and withdrawals, Binance highlighted that few users use USD transfers.

Binance.us continues to offer USD remittances. Since these are two legally different companies, Binance can continue to offer USD payments and deposits.

Binance.us was founded in 2019 when regulators banned Binance.com in the US. Thus, the two systems operate independently of each other and are subject to different legal frameworks. This is still a thorn in the side of the authorities.

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Independence issues and organizational issues

The separate nature of Binance and Binance.us is a hot topic for US regulators. Recently released messages among Binance’s leadership indicate that the subsidiary may not be fully independent.

The UK subsidiary of Binance never took off. The UK’s Financial Conduct Authority (FCA) has banned Binance Markets Limited from conducting regulated activities in the UK without its prior approval.

Binance News

Binance is in the spotlight of US regulators / Image source: HFA_Illustrations / shutterstock.com

Binance.com, which is not available in the US, is the company through which Binance has been conducting business in the UK since closing its local branch. sGovernments in Japan, Germany, Thailand, Canada and other countries have also investigated or restricted Binance’s trading practices within their borders.

In December, US prosecutors appeared to be at odds over whether to indict Binance. But last month, Patrick Hillman, Binance’s chief strategy officer, told the Wall Street Journal that Binance faces penalties and fines from the investigation.

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Is Binance Increasingly Facing Headwinds?

Being the largest crypto exchange in the world, we can assume that the authorities will continue to monitor the platform closely in the future. The seat is currently in Malta. The average trading volume is $20 billion.

As mentioned earlier, there have been repeated allegations from various governments. Regulations are likely to become more stringent in the future. However, this also provides security for customers.

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