Binance in trouble in Great Britain? Paysafe walks away from regulatory challenges

Scare to isolate cryptos? – THE harassment from regulators to the crypto exchange Binance bears fruit: it literally frightens its partners in traditional finance. The cryptocurrency sector is subject to a regulatory pressure unheard of, which makes it “too demanding” for the British paysafe. Transfers in pound sterling (GBP) will therefore have to be hanging.

Binance forced to stop GBP transfers via Skrill

Times are tough for the cryptocurrency exchange Binance. The bulldogs of the financial regulation are firmly attached to his calves, and obviously do not intend to release them anytime soon.

Result, its partner and payment provider in British pounds – Skrillfrom Paysafe – recently explained that they want cease his relationship with Binance. As the reports notably The Block, the Changpeng Zhao exchange is thus forced to suspend deposits and withdrawals in GBP from Monday, May 22, 2023.

For the new usersthis suspension of transactions in pounds sterling is even immediatesince in this case it is already effective since Binance’s announcement, made this Monday, March 13. The crypto-stock market is however reassuring, specifying that “less than 1%” of its users used this input option (on ramp) and output (off ramp) in GBP and in fiat from Skrill.

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Paysafe throws in the towel in the face of a very hostile regulatory environment

The sad thing is that it’s not not a question of profitability, or even a disagreement with Binance, which causes Paysafe and Skrill services to withdraw from the crypto exchange. No it’s regulatory artistic vaguenessand the severity/complexity of the few snippets of regulations in place, which cause Paysafe to leak from Binance.

“We have concluded that the UK cryptocurrency regulatory environment is too demanding to offer this service at present. And so this is a prudent decision on our part, taken with an abundance of precautions. »

Paysafe spokesperson quoted by The Block

Following Paysafe’s desertion over regulatory hurdle, Binance explains “try to find an alternative solution” to offer transfers in GBP again. The exchange therefore has a little over 2 months to find a more courageous partner. Incoming/outgoing transfers in other fiat currencies (euro, dollar, etc.) and crypto purchases by credit card are not affected by this defection from Skrill.

If Binance is in danger of (temporarily?) losing UK pound transfers, the exchange still seems solid on its feet. Indeed, despite the incredible pressure from the regulators, the CZ platform has managed the feat of recruit more employees (of which surely a lot for his compliance department!).

Binance has now reached a sufficient critical size to be able to return blow after blow in this kind of skirmish. To register on the exchange and form your own opinion, it’s this way. You will save 10% on your trading fees by following this link (trading link).