Binance Halts Sterling Transactions: Here’s Why
• Binance has announced the suspension of sterling transfers, citing “Paysafe” as the reason for the halt.
• The service will be terminated for all users on May 22nd and it affects less than 1.0% of its users.
• Binance is currently looking for an alternative solution to resume sterling transactions.
Binance Halts Sterling Deposits and Withdrawals
Binance recently announced that it has suspended deposits and withdrawals in sterling currency until further notice, attributing the decision to its partner Paysafe ceasing pound transactions on Monday. The termination of services will affect less than 1.0% of Binance’s 128 million customers worldwide, with an official end date of May 22nd.
Reason Behind Pause
A spokesperson from Paysafe commented that due to a challenging U.K regulatory environment regarding crypto, this decision was taken in „an abundance of caution“. This follows a warning issued by the Financial Conduct Authority (FCA) back in June 2021 that Binance did not have permission to undertake regulated activity in the United Kingdom. In addition, Binance is currently under investigation by the Justice Department for suspected violations including money laundering as well.
Alternative Solutions Being Explored
To ensure affected users still have access to their GBP balances, Binance is actively searching for an alternative solution to resume sterling transactions as soon as possible. Despite this setback, the company continues to offer services in other notable currencies like dollars and euros.
FCA Warning Against Unregulated Activity
The FCA had warned consumers that Binance did not have permission to undertake regulated activity in the United Kingdom before suspending sterling transfers on Tuesday due to Paysafe halting pound transactions for new users on Monday. This serves as a reminder against using unregulated platforms for financial activities such as cryptocurrency trading and exchanging virtual currencies into real-world assets like fiat currency or goods/services without proper regulation or oversight from authorities like FCA or EFSA (European Securities & Markets Authority).
In conclusion, despite being one of the world’s largest cryptocurrency exchanges with over 128 million customers globally, Binance has halted sterling deposits and withdrawals after its partner Paysafe ceased pound transactions on Monday due to regulatory restrictions imposed by UK authorities such as FCA or EFSA (European Securities & Markets Authority). The company is now actively seeking out an alternative solution but warns consumers against using unregulated platforms when dealing with financial activities related cryptocurrency trading or conversion into real-world assets without proper supervision from authorities like FCA or ESFA (European Securities & Markets Authority).