Binance stopped depositing and withdrawing funds in British pounds for new users from the UK from March 13, for other users from this country the functions will be available until May 22, according to Bloomberg. This is due to the fact that Binance’s banking partner, Paysafe, has stopped supporting transactions in British currency for exchange customers, citing the overly complex approach of UK regulators to cryptocurrencies.
Paysafe, a payment service provider, has said it will stop providing one of its products to Binance customers in the UK, without specifying if it will stop supporting other cryptocurrency platforms as well. Paysafe noted that the UK portion of its overall business with Binance is “small” and that it will continue to work with the exchange elsewhere in Europe and Latin America.
At the same time, the Binance team is working hard to find an alternative solution for users affected by these changes, a representative of the exchange told the publication.
Paysafe’s withdrawal from the largest crypto exchange reflects rapidly deteriorating conditions for the crypto industry in the UK. Earlier this month, two UK banks, Nationwide Building Society and HSBC Holdings, tightened restrictions on retail customers buying cryptocurrencies, banning purchases using credit cards.
At the same time, London declares its intention to make the country a leader in the crypto industry and create conditions for the work and development of crypto companies in the UK. The UK authorities intend to introduce a new set of measures to regulate the crypto industry, the country’s Ministry of Finance is already completing the development of new rules, their public discussion should be completed by April 30.
When the agency made these rules available for public consultation, Binance said it welcomes the UK government’s action as it believes in the need for effective and proper regulation for the mass adoption of digital assets.