Finance

Binance suspends sterling withdrawals following partner exit

Cryptocurrency exchange Binance has suspended withdrawals in sterling again, after one of its key partners terminated its agreement with the firm.

Binance has told UK customers that bank withdrawals via the Faster Payments network have been “temporarily suspended”, but has provided no further details on the change.

“We are working to resume this service as soon as we can,” an email sent to customers of its platform on 13 July and seen by Financial News said.

Binance had previously temporarily suspended bank withdrawals in pounds sterling earlier this month, following a warning to consumers by the UK’s Financial Conduct Authority that the company was not authorised to carry out regulated activities in the country.

A spokesperson for Binance was contacted for comment.

READ  Binance crackdown highlights regulatory crypto conundrum

This latest development comes after Clear Junction, a payments technology partner of Binance, said it would “no longer be facilitating payments” related to the company as a result of the FCA’s decision.

“We have decided to suspend both [sterling] and [euro] payments and will no longer be facilitating deposits or withdrawals in favour of or on behalf of the crypto trading platform,” Clear Junction said on 12 July.

“Clear Junction acts in full compliance with FCA regulations and guidance in regards to handling payments of Binance.”

A number of UK banks have sought to either block customer transactions to Binance or revise their cryptocurrency policies for consumers in the wake of the FCA’s crackdown, including Santander, Nationwide and NatWest.

READ  Nationwide reviews crypto policy as UK banks crack down on Binance

The FCA is not the only regulator to be challenging Binance on its cryptocurrency activities, which include buying and selling crypto tokens as well as regulated products such as spot trading.

Authorities in Japan, Thailand and the Cayman Islands have also issued warnings against the company, which does not have a clear headquarters location.

Binance chief executive Changpeng ‘CZ’ Zhao said earlier this month that the firm plans to double the size of its compliance team this year in a bid to work better with watchdogs.

“Binance has grown very quickly and we haven’t always got everything exactly right, but we are learning and improving every day,” Zhao said.

“We hope to clarify and reiterate our commitment to partner with regulators, and that we are proactively hiring more talent, putting in place more systems and processes to protect our users.”

To contact the author of this story with feedback or news, email Emily Nicolle

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