Binance Loses UK Banking Partner for British Pound

Paysafe’s fiat-to-crypto provider Skrill has informed Binance that it will no longer be able to provide deposits and withdrawal services from May 22

article-image

Source: Shutterstock / mundissima, modified by Blockworks

share

Binance will discontinue deposits and withdrawals denominated in the British pound until it can find a new banking partner. 

The crypto exchange informed users of the development via email Monday, saying that its GBP fiat partner Skrill Limited will stop offering services via the Faster Payment system, which allows transactions to complete within seconds.  

GBP deposit and withdrawals will be suspended from March 13 for new users and on May 22 for all Binance users, a spokesperson told Blockworks. Any GBP deposits made after May 22 will be refunded within seven days.

“We will provide more information on the suspension of withdrawal services at a later date,” Binance told customers.

Skrill has moved away from its crypto services due to the UK regulatory environment being too challenging in relation to crypto. 

The change is said to affect only 1% of Binance’s users, but the exchange said it knows these services are “valued by our users and our team is working hard to find an alternative solution for them.”

“In the meantime, all methods of depositing and withdrawing other fiat currencies as well as buying and selling crypto on Binance.com remain unaffected, including bank transfer using one of the other fiat currencies supported by Binance, and buying and selling crypto directly via credit or debit card,” the spokesperson added. 

Binance announced the launch of its UK trading arm in June 2020, allowing investors to trade using GBP and euros through Binance Jersey, the island territory and British Crown Dependency located between off the coast of France.

But a year later, the UK’s financial watchdog warned that Binance was not “permitted to undertake any regulated activity” in the country.

The exchange then tapped PaySafe’s Krill as its new GBP/fiat partner in March last year, about a month after the digital payments provider launched a fiat-to-crypto withdrawal service.

The crypto industry is currently facing a lack of banking services after the collapse of crypto-friendly banks Signature and Silvergate. Last month, Binance said it would suspend US dollar transfers, with CEO Changpeng Zhao commenting that some banks are withdrawing support for crypto.


Don’t miss the next big story – join our free daily newsletter.

Follow Sam Bankman-Fried’s trial with the latest news from the courtroom

Tags

Upcoming Events

MON - WED, MARCH 18 - 20, 2024

Blockworks’ Digital Asset Summit (DAS) will take place March 18-20, 2024 at The Hilton London Metropole. Why London? Momentum. London has become one of the world’s hottest crypto hubs. Innovation is thriving, new institutional investors are flocking in, and regulators like […]

recent research

l1 cover.png

Research

This analysis focuses on financial metrics for general-purpose L1 blockchains. In many ways, L1s should be viewed as an entirely new asset class more comparable to digital economies than traditional businesses. L1s are the core infrastructure enabling the creation of new-age businesses like onchain protocols.

article-image

The partnership comes amid speculation that China’s views on crypto may be softening

article-image

Six ether-related funds by ProShares, Bitwise and VanEck saw combined trading volumes of about $2 million Monday

article-image

The summary report was published on Sept. 27 and includes the Fed’s recommendations on how to avoid a similar situation in the future

article-image

On Oct. 1, more than $70 million in cryptocurrency short positions were liquidated, pushing bitcoin and ether more than 3% and 4% higher, but gains were quickly erased

article-image

As Sam Bankman-Fried prepares to stand trial for his alleged crimes associated with FTX and Alameda Research, social media discussed Ross Ulbricht’s conviction over eight years ago

article-image

The CFTC’s self-proclaimed campaign against DeFi puts the future of US innovation at risk