- Crypto exchange Binance stops accepting deposits made in British pounds.
- Withdrawals in sterling will cease on 22 May 2023.
- Pressure from regulators identified for payment options being reined in.
The world’s largest cryptocurrency exchange Binance, the ‘go-to’ platform for many crypto investors, has halted deposit and withdrawal services through bank transfers and card payments for UK customers. Online payments agent Paysafe which until recently supported the transactions has quoted pressure from regulators, specifically the FCA, as the reason for them pulling out of the market.
More FCA pressure on crypto sector
The statement by Paysafe which explains their decision to stop supporting UK based transfers highlights how the UK’s primary financial regulator is clamping down on crypto trading.
“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.”
Source: Paysafe / The Register
That’s far from a vote of confidence in the crypto sector as a whole, and reflects how firms such as Paysafe are moving away from servicing cryptoassets. Paysafe has fingers in other pies, especially the gaming sector, and the firm obviously feels that from a commercial point of view their interests are better met elsewhere.
Where does this leave Binance?
In response Binance referred to the number of customers using Paysafe to perform fiat deposits and withdrawals in the UK is “small” – in the region of 1% of its users. There is also a suggestion that Binance will try and set up an alternative route for those who have been shutout by Paysafe’s move. A spokesperson for the firm said, “We will share updates on this as and when we are able,” which doesn’t suggest that project is near being completed.
Where does this leave UK customers of Binance?
The more pressing concern for many crypto investors is the fact that GBP denominated withdrawals to UK customers will only be possible up to 22nd May 2023. Deposits have already been banned. That leaves those looking to scale out of positions a relatively short period of time to extract themselves from positions in markets notorious for having high price volatility.
A lack of new buyers in a market caps demand and that can lead to falling prices. With regulators other than the FCA suggesting they will also clamp down on the sector, that classic demonstration of supply and demand is something for crypto investors to keep in mind.
People Also Read:
- Football Star jailed for Defrauding Friends and his Church
- Unauthorised and Scam Forex Brokers for March 2023
- Lawmakers Criticise Finance Industry’s Obstacles to Making Fraud Refunds Easier
Crowdsourcing information about scam brokers can help others avoid falling into the traps set by disreputable brokers and you can share your experiences here. If you would like to know more about this particular topic, or have been scammed by a fraudulent broker, you can also contact us at [email protected]
- What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
- Crypto Traders and Coin Prices Face New Challenge as Binance Gives up its FCA Licence
- Interpol Declares Investment Scams “Serious and Imminent Threat”
- Annual UK Fraud Audit Reveals Scam Hot-Spots
- Former Schwab, Wells Fargo, and Morgan Stanley Advisor is Sentenced to Seven Years
- FX Fraudster On The Run After £70m Ponzi Scheme Collapses
What Does Binance Being Kicked Out of Belgium Mean for Crypto Prices?
Safest Forex Brokers 2023
|Broker||Info||Best In||Customer Satisfaction Score|
|#1||72% of retail CFD accounts lose money. Founded: 2014||Global Forex & CFD Broker||
Best Trading Conditions Visit broker
|#2||Your capital is at risk Founded: 2014||Global Forex Broker||
BEST SPREADS Visit broker
|#3||Your capital is at risk Founded: 2006||Globally regulated broker||
BEST CUSTOMER SUPPORT Visit broker
|#4||82% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money. Founded: 2008||Global CFD Provider||
Best Trading App Visit broker
|#5||Between 74-89 % of retail investor accounts lose money when trading CFDs Founded: 2010||Global Forex Broker|
|#6||76% of CFD traders lose money Founded: 2007||Global CFD & FX Broker||
ALL-INCLUSIVE TRADING PLATFORM Visit broker
|#7||Your capital is at risk Founded: 2009, 2015 and 2017||Global Forex Broker|
|#8||Your capital is at risk Founded: 2006||CFD and Cryptocurrency Broker||
CFD and Cryptocurrency Visit broker
Forex Fraud Certified Brokers
Stay up to date with the latest Forex scam alerts
Sign up to receive our up-to-date broker reviews, new fraud warnings and special offers direct to your inbox