Binance is one of the largest cryptocurrency exchanges in the world. Financial News recently reported that UK consumers of Binance do not have the option to withdraw their funds in pound sterling anymore. The problem was first noted on July 13th, 2021, when numerous Binance users in the UK found themselves unable to cash out in fiat.
The Binance management sent a courtesy email to their consumers explaining the restriction. The email claims that Binance has been facing problems from the Faster Payment Network (FPN). FPN is a digital payment service facilitator owned by Pay.UK. Other than the emails, no representative or spokesperson from Binance offices has come forward to comment on the matter. At present, it is not clear that why the service has suddenly been halted on the crypto trading platform.
While no officials from Binance have come forward to explain the sudden GBP blockade, many financial analysts seem to have reached the root cause of the problem. Binance depends on a digital payments solution service called Clear Junction for allowing consumers in the UK to send and receive funds in GBP.
The withdrawals and deposits on the Clear Junctions took place on two digital channels FPN and SEPA or the Single Euro Payment Area. SEPA is a payment integration statement for Europe-based clients. Commenting on the issue, Binance’s email posits that SEPA payments are halted for reasons beyond the control of Binance management. Binance will have to look for another digital payment facilitator if the platform wants to resume the services for UK clients.
Binance is Facing Regulatory Investigation in 5 Countries
At present, five regulatory agencies from 5 countries, i.e., Germany, Japan, Poland, Canada, and China, are investigating the crypto exchange platform. According to insiders, the reason behind Clear Junction severing ties with Binance can be traced back to the UK’s regulatory agency Financial Conduct Authority (FCA). FCA has stated in the past that Binance is operating in the region without a license.
Banking institutions in the UK like Barclays and Santander have already barred their consumers from conducting any transactions with Binance.