Another European Payment Processor Sever its Ties with Binance and Suspends GBP & EUR Deposits and Withdrawals
700+ Binance users in France and in Italy are forming a group to sue the exchange after they lost money during the May 19 sell-off as they were unable to access the exchange due to an outage.
European payment processor Clear Junction is the latest one to announce that it would no longer process transactions for the leading cryptocurrency exchange Binance.
The decision has been made following the UK’s financial watchdog, Financial Conduct Authority (FCA), issuing a warning against Binance operating in the UK, the London-based company posted on its website.
As per the move, both GBP and EUR payments are suspended, and the payment processor won’t facilitate deposits or withdrawals in favor of or on behalf of the crypto trading platform.
“Clear Junction acts in full compliance with FCA regulations and guidance in regards to handling payments of Binance.”
Last month, the FCA said that Binance Markets Limited, a separate Binance entity that operates in the UK, is not licensed to do business there but did clarify that the UK customers can continue to use Binance.com.
Still, since then, a growing number of UK banks, including Barclays, Santander UK, NatWest, among others, have limited their account holders' ability to access Binance or other crypto exchanges in the name of keeping their customers’ money safe.
Binance is the world’s largest cryptocurrency exchange with no official headquarters and has been under the scrutiny of global regulators.
Amidst this, Binance users in two groups – one in France working with 700 people and one in Italy are looking to sue the exchange after they lost money during the May 19 sell-off after they were unable to access the exchange due to an outage leading to them getting liquidated.
However, due to no headquarters, they are trying to figure out just whom to petition.
Binance says it “took immediate steps to engage with users affected by the outage” and to provide compensation, which involves three free months’ worth of Binance’s VIP platform.