Binance, the world’s largest crypto exchange with 128 million users, had to stop its GBP deposits and withdrawals. This comes a month after the world’s largest crypto exchange ceased dollar transfers. This is because, Binance‘s partner for GBP deposits, FCA-regulated Paysafe, decided to stop offering Binance customers its embedded wallet solution in the UK in a move it blamed on complex regulation.
“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,” a Paysafe spokesperson said to The Block.
Access to the traditional FIAT world is not likely to get any easier in the near term for crypto schemes following the spectacular collapse of crypto-friendly banks Silvergate, Silicon Valley Bank, and Signature Bank. Nervousness among traditional financial institutions about working with cryptos will increase.
Added to this will be increased oversight by regulators. Paysafe probably wanted to avoid trouble with the FCA. The UK regulator is very skeptical about Binance.
