Binance, the largest crypto exchange by trading volume, has announced that it would halt deposit and withdrawal services for customers in the U.K.
The move came right after Binance's local banking partner, Paysafe, ended support for these transactions in pounds.
- Deposits and withdrawals in pounds were halted for new users as of March 13, though the existing customers can continue to use the services until May 22.
- Meanwhile, Binance will work on finding an alternative solution.
- Paysafe cited local regulators' approach to the crypto assets while explaining its decision to stop offering one of its products to Binance customers in the U.K.
- The London-based online payments company will continue to work with Binance in other parts of Europe and Latin America.
- The U.K. Financial Conduct Authority, the country's financial regulator, has seen crypto as a high-risk asset class for several years.
- In 2020, Binance bought a local firm in the U.K. to establish a base and subsidiary in the country to operate as Binance Markets Ltd.
- A year later, the move faced a warning by the U.K.'s financial regulator since Binance did not obtain relevant permission to operate in the country.
