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Binance customers frozen out of withdrawals via the UK’s key payment network

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Binance customers have lost the ability to retrieve and deposit pounds with one of the UK’s leading payment systems three days after the country’s financial watchdog banned the crypto exchange from operating in Britain.

On Monday the digital asset company said in its main exchange, Binance.com, that the ability to drive sterling off the platform through a system known as Faster Payments had been “suspended for maintenance”. . Binance did not say how long the interruption would last and declined to comment immediately on the warning.

Faster payments, a service used by major banks to process payments quickly, is one of the main channels for moving traditional currencies to and from the exchange. While the Binance website says customers can also transfer money with bank cards, the lack of access to Faster Payments represents a significant limitation on UK customers ’ability to withdraw money from the exchange directly into their bank accounts. Many people sent Binance on Twitter on Monday to ask about the suspension of Faster Payments.

Faster payments could not be made for comment.

Binance is one of the largest digital asset companies in the world. It handled about $ 1.5 billion in transactions last month, according to BlockCrypto. Regulators in several countries including Japan and Germany have recently censored the exchange – which offers trading in cryptocurrencies and a wide range of products linked to digital currencies – to do business in their countries without proper approval.

The suspension comes after the UK’s Financial Conduct Authority on Friday ordered the UK’s regulated subsidiary of Binance to stop any financial activity in traditional currencies in the UK. The group also withdrew its candidacy to be a registered crypto exchange last month after extensive discussions with the FCA. The primary focus of the regulator when examining such applications is practices and controls related to the prevention of money laundering and terrorist financing.

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The exchange had said over the weekend that FCA’s intervention “did not have a direct impact on the services provided on Binance.com.”

The FCA has also studied the Binance company’s wider links with British consumers, according to a person who is familiar with the matter.

Binance typically has access to Faster Payments and a similar system for the eurozone called the Single Euro Payments Zone (Sepa) through an FCA-regulated company called ClearJunction, Binance says on its website. Dima Kats, the executive director of ClearJunction, declined to comment on whether Binance had lost access to Faster Payments, but said it had paid close attention to regulators ’actions.

Access to euro transfers via Sepa appeared to be active on Binance.com from 18:00 London time on Monday.


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