Binance customers have lost the ability to withdraw and deposit pounds using one of the UK’s major payments systems, three days after the country’s financial watchdog banned a British crypto exchange.
On Monday, the digital asset firm said on its main platform, Binance.com, that the ability to remove sterling from the platform through a system known as Faster Payments has been “suspended for maintenance.” Binance did not say how long the outage would last and declined to immediately comment on the notice.
Faster Payments, a service used by major banks to process payments quickly, is one of the main channels for transferring traditional currencies to and from the exchange. While Binance’s website says customers can still transfer funds using bank cards, the lack of access to faster payments is a significant limitation on UK customers’ ability to withdraw funds from the exchange directly to their bank accounts. Several people wrote to Binance on Twitter on Monday to inquire about the suspension of faster payments.
Faster payments cannot be reached for comment.
Binance is one of the largest digital asset companies in the world. It processed nearly $1.5 trillion in transactions last month, according to BlockCrypto. Regulators in several countries including Japan and Germany recently monitored the exchange – which provides trading in cryptocurrencies and a wide range of crypto-related products – for doing business in their countries without proper approval.
The comment follows the UK’s Financial Conduct Authority on Friday Ordered a UK regulated subsidiary of Binance To stop any financial activities in traditional currencies in the UK. The group also withdrew its application to be a registered crypto exchange last month after extensive discussions with the FCA. The primary focus of the regulator when reviewing such applications is practices and controls related to the prevention of money laundering and terrorist financing.
The exchange said over the weekend that the FCA’s intervention “has no direct impact on the services offered on Binance.com.”
The Financial Conduct Authority (FCA) is also examining Binance Holdings’ broader ties to UK consumers, according to a person familiar with the matter.
Binance says on its website that the Binance platform typically has access to faster payments and a eurozone-like system called the Single European Payments Area (Sepa) through an FCA-regulated company called ClearJunction. ClearJunction CEO Dima Katz declined to comment on whether Binance had lost access to Faster Payments but said it had paid close attention to the regulator’s actions.
Access to euro transfers via Sepa appears to be active on Binance.com as of 6pm London time on Monday.