Binance, the world’s largest cryptocurrency exchange, has halted deposits and withdrawals in British pounds for new customers, while existing customers have until May 22 to transact in the currency.
The news comes as Paysafe, Binance’s UK banking partner for facilitating fiat on-ramps and off-ramps, cut tied with the Caymans-registered crypto exchange, citing local regulators’ approach to cryptocurrencies.
“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,” Paysafe said in a statement.
In further comment sent to Proactive, Paysafe said: “While we recognise this is disappointing, the UK portion of our business with Binance is small and we’re pleased to be continuing to work with them in Europe and Latin America where they are expanding.
Paysafe’s withdrawal of support marks another major blow to Binance’s UK operations.
Less than a year ago, Binance reopened its doors to UK customers after being ordered to cease trading by the Financial Conduct Authority in February 2022.
Banks drop crypto
Major UK banks have been falling out of favour with the crypto sector in recent months.
Nationwide Building Society implemented restrictions on its customers' ability to purchase cryptocurrencies earlier this month.
In November 2022, Banco Santander (LSE:BNC) limited payments to crypto exchanges to £1,000 per transaction with a total limit of £3,000 in any rolling 30-day period.
NatWest does not allow any payments at all to cryptocurrency exchanges, while HSBC’s corporate media relations manager Ankit Patel told Coindesk last April that “HSBC has no appetite for direct exposure to virtual currencies and limited appetite to facilitate products or securities that derive their value from virtual currencies”.