- Cryptocurrency exchange giant Binance has announced they will be suspending sterling deposits and withdrawals for UK users after their banking partner, Paysafe, decided to discontinue services.
- The change affects less than 1 percent of Binance’s users.
- Binance is actively seeking an alternative solution for sterling transfers.
Binance Suspends Sterling Transactions Following Split with Banking Partner
Cryptocurrency investors and enthusiasts have been rocked by a series of sudden collapses of banks that were once seen as friendly to the crypto industry. These banks, which had previously been critical partners for crypto exchanges and firms, have abruptly cut ties with their crypto clients. One such exchange is Binance, the world’s largest cryptocurrency exchange. On Tuesday, a spokesperson for Binance announced that they would be putting a halt to sterling deposits and withdrawals just one month after it ceased transfers in US dollars.
Paysafe Cut Ties with Binance Following Regulations
According to the Binance spokesperson, the exchange’s partner for sterling transfers, Paysafe, has notified them that their services will be discontinued starting May 22, which will affect all of Binance’s customers. As a result, new users have been unable to make sterling transfers since Monday. The spokesperson said that this change affects „less than 1 percent“ of their users but did not disclose an exact figure.
Binance Witnesses Major Setback in UK
This latest development is just another challenge for Binance in its efforts to gain access to traditional currencies. In fact, last month the exchange had to suspend all dollar bank transfers due to increased regulatory scrutiny and crackdowns on the crypto industry by U.S authorities. A Paysafe spokesperson confirmed this decision saying „We have concluded that the UK regulatory environment in relation to crypto is too challenging.“