The world’s biggest non-custodial crypto exchange, Binance, has restricted their UK clients from directly making deposits and withdrawals from their bank account. All this happened because Binance’s banking partners terminated the operating agreement amid chaos in the crypto industry.
This move came to the response by decision of UK Payment processor Paysafe, who said that they are terminating its embedded wallet solution for the customers and working with Binance to terminate the UK pair’s agreement in a fair process.
Overnight, Binance has banned the withdrawal for UK customers using Bank cards after suspending the making of withdrawals directly into bank accounts.
- Binance has discontinued the deposits and withdrawals of Sterling as its local banking partner ends the contract altogether.
- All the withdrawals and deposits are no longer available for the new users, and the service of existing customers will be scrapped entirely till May 22.
- This update of Binance will only impact some of the other accepted currency and payment methods; it applies only to UK customers.
A detailed illustration
Binance emailed all the users on March 13 that users will not be able to process deposits and withdrawals in Sterling. However, the company has also said it will impact only 1% of the total users, and they can still access their live balances.
Binance has clearly stated that this action will not impact users’ accounts, and its functionalities will remain unchanged.
Likewise, all the deposits and withdrawals of fiat currencies or buying and selling different currencies will remain unaffected. The cryptocurrencies can be bought directly via debit or credit card without prior changes.
Binance also said that we know these services are valued by our customers and play a crucial role in placing transactions smoothly. However, our team is finding the best alternative to this concern, and we will share it with all of you once we come up with the best solution.
All the other forms of payment are still available for UK people, and there is nothing to worry about.
Cause of Sudden Cessation
Paysafe is an online payment company that confirms all GBPs transactions. This sudden halt was mainly taken because of the regulatory purview on cryptocurrency. That’s why taking quick action was mandatory.
“We have concluded that the UK’s regulatory environment regarding crypto is quite challenging, and it is getting complex for us to provide services constantly. So, it is a prudent decision on our part taken with an abundance of caution.” Paysafe said.
Binance Regulatory Battle In The UK
Since Binance launched its services in the UK, they have already been battling with the regulators. Binance has launched its services in the UK since 2020 with no restrictions, and things were complicated.
Just a year after launching its services in the UK, the UK’s Financial Conduct Authority warned Binance’s operation, saying there was no permission to undertake any regulated activity.
That’s why Binance has to take action by being in partnership with PaySafe, which is a UK-regulated company that enables deposits and withdrawals with SEPA.
Whether the exchange will find someone else to revive its services is not confirmed.
Crypto Exchange Banned By UK Regulators
The suspension of card withdrawals in the UK also follows the decision to suspend all Binance payments.
The action of FCA will not prevent UK customers from buying or selling cryptocurrencies. Digital currencies are still unregulated but will have an option of withdrawing their crypto funds as fiat cash.
It is not the first time Binance has had some conflicts with the government; it is also banned from taking deposits in local currencies.
In February, Binance was also suspended for making a transaction in US dollars. Again, there was no specific reason, but it happened because US regulators kept a strong eye on and investigated the enterprise.
Binance has also announced that it will be winding down its operations in the UK and requested that all UK users withdraw their crypto holdings. However, it is important to note that Binance has been providing its services and offers in many other jurisdictions.
The Financial Conduct Authority warned UK customers in 2021 that Binance has no permission to offer its services regulated by Britain.
Binance is the world’s largest crypto exchange, halting deposits and withdrawals. This news comes just after a month after the exchange halted US dollars. For now, the company is finding the best alternative solution for payment transfers.
Q. Can we still withdraw from Binance UK?
Ans. No, Binance restricts UK users from making deposits and withdrawals from their account after its local banking partner PaySafe terminated the agreement with fair notice.
Q. Has Binance immediately suspended withdrawals in the UK?
Ans. Binance halts deposits and withdrawals for new customers in the UK. The existing customers have to complete their deposits and withdrawals by May 22.
Q. Will Binance continue its services in the UK?
Ans. If Binance finds another partner during a specific period, they can continue their services in the UK.
Q. iS crypto Trading legal in the Uk?
Ans. Yes, crypto Trading is legal in the UK, while countries like India and China have tried to ban these digital assets. So the UK government devised a different approach to inform people about the potential risks associated with crypto Trading.