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Binance customers cannot withdraw funds through major UK payment networks

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After the country’s financial regulator banned cryptocurrency exchanges from operating in the UK for three days, Binance customers have been unable to withdraw and deposit pounds in one of the UK’s major payment systems.

On Monday, the digital asset company stated on its main exchange Binance.com that the ability to remove GBP from the platform through a system called Faster Payments has been “maintained temporarily.” Binance did not say how long the power outage will last, and declined to immediately comment on the notice.

Faster Payments is a service used by major banks to quickly process payments and is one of the key channels for traditional currencies to enter and exit the exchange. Although Binance’s website states that customers can still use bank cards to transfer funds, the inability to use Faster Payments means that UK customers’ ability to deposit funds directly from the exchange into their bank accounts is severely restricted. On Monday, several people sent messages to Binance on Twitter asking questions about the suspension of Faster Payments.

Faster Payments could not be reached for comment.

Binance is one of the world’s largest digital asset companies. According to data from BlockCrypto, it processed approximately $1.5 trillion in transactions last month. Regulators in several countries, including Japan and Germany, have recently condemned the exchange, which provides transactions in cryptocurrencies and various digital currency-related products, for conducting transactions in their countries without proper approval. business.

The suspension was after the UK Financial Conduct Authority on Friday Subscribe to Binance’s regulated UK subsidiary Stop any financial activities in traditional currencies in the UK. After extensive discussions with the FCA, the group also withdrew its application to become a registered cryptocurrency exchange last month. When reviewing such applications, the regulator’s main focus is on practices and controls related to the prevention of money laundering and the financing of terrorism.

The exchange stated over the weekend that the FCA’s intervention “has no direct impact on the services provided on Binance.com”.

According to people familiar with the matter, the FCA has also been reviewing the broader Binance Holdings’ connections with British consumers.

Binance stated on its website that Binance can usually access Faster Payments and a similar Eurozone system through ClearJunction, a company regulated by the FCA, called the Single Euro Payments Area (​​Sepa). Dima Kats, the chief executive of ClearJunction, declined to comment on whether Binance is unable to use Faster Payments, but said that he has closely followed the actions of the regulators.

As of 6pm London time on Monday, visits to transfer euros via Sepa appear to be active on Binance.com.

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