Sterling Transfers Will Be Halted On Binance's Crypto Exchange

A month after ceasing dollar transactions, the largest cryptocurrency exchange in the world, Binance, has decided to stop accepting deposits and withdrawals in pound.

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According to Binance, Paysafe, its partner for sterling payments, has informed Binance that it will stop offering its services once sterling transactions for new users are discontinued on Monday.

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The adjustment "affects fewer than 1% of Binance users," the representative added, "and Binance will make sure that affected users may still access their GBP balances."

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With more than 128 million users, Binance could not provide information on the precise number of users the change will affect. According to the representative, the corporation is looking for a "alternative solution" for transactions in sterling.

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The Block was the first to disclose the suspension of transactions for pound, and it is the most recent barrier blocking Binance from using conventional currencies. In response to an intensifying crackdown on cryptocurrencies by U.S. authorities, Binance this month banned all dollar bank transfers.

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According to Trade Algo, the Justice Department is also looking into Binance, the company led by billionaire CEO Changpeng Zhao, for possible money laundering and sanctions violations. Trade Algo were informed by a key executive of Binance last month that Binance anticipated paying fines to end U.S. investigations into the business.

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After the U.S., Binance faced more difficulties in obtaining money. The Securities and Exchange Commission informed the business that created the "BUSD" stablecoin that it was thinking about initiating enforcement action against it. As of late this month, the action caused outflows of about $6 billion.

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It's unclear how crucial money in pounds is to Binance. The corporation does not disclose its financial information, and the main asset of the company, the enormous Binance.com exchange, is mostly hidden from the general public.

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An inquiry for comments from Trade Algo did not receive a response right away from Paysafe.

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Faster Payments, a UK payment network that similarly lacked an instant reaction, is where the company provides the service.

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According to a Skrill spokesperson who spoke to Decrypt, "the UK regulatory environment in relation to cryptocurrency is too challenging for us to offer this service at this time and thus this is a sound choice on our part taken in an abundance of caution." Skrill is a Paysafe division that partners with Binance.

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Last year, the British financial watchdog declared that it lacked the authority to prevent Binance from using Paysafe to access the Faster Payments network.

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Consumers were alerted by the UK's Financial Conduct Authority (FCA) in June 2021 that Binance lacked "any form" of authorization to provide services governed by British law.

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A request for comment from the FCA did not receive a prompt response.

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