Binance will halt deposits and withdrawals via bank transfers for its UK-based customers.
The decision came after the crypto exchange lost its local banking partner Paysafe.
Paysafe cited the current regulatory environment in the U.K. for its decision.
The crypto exchange will suspend all GBP deposits and withdrawals starting 22 May 2023.
The world’s largest crypto exchange Binance has lost its banking service provider in the United Kingdom, in what seems to be a spillover of the regulatory crackdown on crypto entities in the United States across the Atlantic.
Binance lost its banking partner due to the regulatory climate in the UK
According to a report by Bloomberg, London-based online payments firm Paysafe ended its support for Binance’s transactions amid rising scrutiny of crypto assets from local regulators. As a result, the crypto exchange is set to lose its British pound (GBP) on- and off-ramps, meaning that customers in the UK will no longer be able to deposit and withdraw using bank transfers.
We have concluded that the UK regulatory environment in relation to crypto is too challenging to offer this service at this time and so this is a prudent decision on our part taken in an abundance of caution.”
statement from Paysafe.
Paysafe has clarified that the suspension of banking services for Binance is only meant for the UK and that it will continue working with the crypto exchange in other parts of the world. A spokesperson for Binance stated that the changes will affect less than 1% of its users. The crypto exchange is currently looking for another banking partner. GBP deposits and withdrawals for new users were suspended on 13 March. GBP bank transfers for the existing customers will be halted on 22 May 2023.
Paysafe’s decision to cease its relationship with the crypto giant resonates with the current sentiment among traditional finance players in the UK. Earlier this month, banks including Nationwide Building Society enforced a limit on the amount of crypto that a customer could purchase using their debit cards.