Binance, the world’s giant cryptocurrency exchange, has announced that it will suspend deposits and withdrawals for UK customers following intense regulatory pressure. The move comes after the exchange’s UK partner, Paysafe, said it would be ending its cryptocurrency deal with Binance due to the challenging regulatory environment in the UK.
According to recent reports, a Paysafe spokesperson said that the decision to end crypto services for UK customers was taken “in an abundance of caution” and that the company was still working with Binance elsewhere in Europe and Latin America. Paysafe did not clarify whether it intended to completely discontinue its involvement with cryptocurrency or only end its collaboration with Binance.
Binance has said that it plans to end support for pound sterling for all customers on May 22. The exchange has suspended withdrawals and pledges for any latest customers using British pounds. The company is working to find an alternative solution to allow customers to trade GBP for crypto.
The move by Binance and Paysafe is the latest blow to the crypto market in the UK, which has faced increasing regulatory scrutiny in recent months. Last year, the Financial Conduct Authority (FCA), the UK’s top financial watchdog, raised concerns after Paysafe brought back pound deposits to Binance, warning customers that the exchange did not have permission to offer these services in the country.
In response to these concerns, the UK government unveiled its own proposals to govern the cryptocurrency market in February, including proposals for new rules around crypto custody and lending activities. The International Monetary Fund has also called for increased regulation of the crypto market, threatening bans if companies cannot enforce regulations.
