Binance, one of the leading cryptocurrency exchanges, is once again facing regulatory pressure that threatens to drive it out of the financial sector, this time in the UK. The company has confirmed that it has been asked to suspend deposits and withdrawals made in British Pounds (GBP).
According to Binance, these services will be suspended for new customers starting today (3/15), and for all its customers until May 22 of this year. This decision follows Paysafe’s resolution to terminate its working relationship with Binance due to the UK’s “challenging” regulatory environment regarding cryptocurrencies.
In a statement, Paysafe’s management stated that the decision to backtrack on its relationship with Binance was a “prudent” step taken in “an abundance of caution”. The company determined that the UK regulatory environment regarding cryptocurrencies was too challenging to provide the service at this time.
This latest development is a blow to Binance, which has been facing increasing regulatory pressure in recent months. The company is under investigation by financial regulators in several countries, including the UK, for allegedly operating without the necessary licenses.
In Brazil, the exchange had to suspend several services for not having authorization such as remunerated account and advertising on the derivatives market to citizens in the country. The company is also accused of facilitating the use of the exchange by a scammer.
Paysafe’s decision to suspend its relationship with Binance is indicative of the pressure that regulatory uncertainty is putting on companies in the cryptocurrency sector. As the market continues to grow rapidly, regulators are struggling to keep up, and companies are finding it increasingly difficult to navigate the complex and ever-changing regulatory environment.
Binance has yet to comment on the latest development, but the company is likely to face more challenges in the coming months as regulators continue to scrutinize the cryptocurrency industry.
Source: The Times
