Binance Halts Deposit And Withdrawals For Its UK Users

Binance, one of the leading cryptocurrency exchanges globally, has halted its withdrawal and deposit services for its UK customers.

• What: Binance suspends its withdrawal and deposit services for UK customers
• Why: This comes after its local banking partner ceased providing support for transactions in British pounds
• What Next: Binance halted the services for its new users on Monday, and will suspend withdrawal and deposit transactions for all customers on May 22.

The exchange platform suspends its withdrawal and deposit services for its UK customers using bank transfers and card payments. This comes after its local banking partner ceased facilitating support for transactions in British pounds. However, according to a Bloomberg report, the spokesperson noted that ” the Binance team is working hard to develop an alternative solution for users affected by the changes.”

A London-based online payment platform, Paysafe, asserted that it would cease providing one of its products to Binance’s users in the United Kingdom, citing the regulatory challenges around crypto assets. Binance suspended the services for new users on Monday, as it will halt such transactions for all customers on May 22. Paysafe noted:

We have concluded that the UK regulatory environment concerning crypto is too challenging to offer this service at this time. So, this is our prudent decision taken in an abundance of caution.

However, Paysafe did not mention whether it will stop supporting other crypto platforms. Nonetheless, the London-based platform noted that its UK business with Binance is small. However, it will keep working with the exchange firm in other parts of Europe and Latin America.

Binance struggle to set a base in the UK

On the other hand, Binance itself has struggled to set a base in the UK. In 2020, it acquired a local firm named Binance Markets Ltd to act as its UK subsidiary. However, the Financial Conduct Authority warned against the platform for lacking the required permission to operate in the country.

In the past years, the UK government has tried to embrace cryptocurrencies. Regardless, financial regulators have repeatedly warned investors about the risks of losing all their money when investing in digital assets.

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