- Binance cites “Paysafe” as it halts sterling transactions.
- The announcement affects less than 1.0% of its users.
- Binance says it’s already looking for an alternative.
Binance continues to pause deposits and withdrawals in notable currencies. On Tuesday, it suspended transactions in sterling as well – about a month after it had ceased dollar transfers.
Why did Binance pause sterling transfers
Reason cited for the halt was Paysafe – its partner for GBP transfers that paused pound transactions for new users on Monday. The service will be terminated for all users on May 22nd. According to a Paysafe spokesperson:
The U.K. 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.
Binance will continue to work with Paysafe in Europe and Latin America, though. Paysafe is yet to make an official comment on the development.
Binance is hunting for an alternative solution
Binance that currently serves over 128 million customers worldwide also confirmed today that it had already started looking for an alternative to resume sterling transactions.
Binance will ensure that affected users are still able to access their GBP balances. The change affects less than 1.0% of Binance users.
Remember that the Financial Conduct Authority (FCA), in June of 2021, had warned consumers that Binance did not have permission to undertake regulated activity in the United Kingdom.
Binance is currently under investigation by the Justice Department for suspected violations including money laundering as well.
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As of June 22, 2020, users of Binance, a leading cryptocurrency exchange, are unable to transfer funds using the sterling currency. This has caused a stir in the cryptocurrency community, so Binance has issued a statement explaining the reasons behind the decision.
According to Binance, the suspension is due to increasing restrictions imposed by the U.K. Financial Conduct Authority (FCA). The FCA announced tougher regulations on fund transfers in May, targeting digital asset providers, such as Binance.
In response, Binance has taken the decision to suspend the deposits and withdrawals of sterling funds. The company cites fears of potential legal repercussions related to the new regulations, which ultimately would leave its customers without access to the platform.
The FCA’s new regulations will require digital asset providers to meet certain criteria in order to operate in the U.K. Those criteria include customer protection, anti-money laundering, terrorist financing and cyber security procedures.
Binance is not alone in this decision, as other exchanges have also suspended their sterling transfers. Coinbase, one of the largest cryptocurrency exchanges, has also recently announced that it will suspend support for the pound.
The decision has left some customers of Binance disappointed. However, the platform is still working on solutions so that its users’ funds will not be affected. For now, it remains unclear when sterling transfers will resume.
All in all, the suspension of sterling transfers on Binance is a temporary measure in response to the sudden changes in regulations imposed by the FCA. Binance is taking all necessary steps to ensure that its customers will not be affected and will be back to trading as soon as possible.