Spot Trading Unaffected But Binance Disables Withdrawal with Bank Cards in the UK Due to ‘Maintenance’
Meanwhile, a growing number of firms in the UK, currently 64 up from 51 in early June, are withdrawing their application to register with the FCA.
Binance customers in the UK have been blocked from making cash withdrawals after the leading cryptocurrency exchange suspended the use of bank cards on its platform.
After moving the ability to withdraw money directly to a bank account earlier, it has now also disabled withdrawals with bank cards, reported The Telegraph.
“This payment channel is closed for maintenance,” was the message showing on the platform when customers tried to withdraw funds on Tuesday.
Card withdrawals on the exchange are made through the Visa network; an option Binance added earlier this year. These outages are reportedly only temporary.
Binance is already unable to use the UK's most popular payment provider as such suspended GBP withdrawals via Faster Payments for all of its UK customers. Now, the exchange has closed off the only two methods for pulling sterling from the platform.
Checkout.com, a payments processor overseen by the FCA in the UK that typically handled credit and bank card transactions for Binance, said that they are not working with Binance Markets Limited. “We continue to monitor the ruling by the FCA closely and ensure Checkout.com is in compliance with all regulatory orders,” Checkout.com told FT.
Not a Policy Shift
Just over the weekend, as we reported, the Financial Conduct Authority (FCA) warned that Binance Markets Ltd., an affiliate of Binance, is not allowed to operate in the UK without prior written approval.
According to the UK’s financial regulator, BML isn’t allowed to operate, adding no entity in the Binance Group “holds any form of U.K. authorization, registration or license to conduct regulated activity in the U.K.”
Despite this, the FCA said, it appears Binance is offering UK customers products and services via Binance.com.
The leading cryptocurrency exchange then took to Twitter to clarify, saying it has no direct impact on the services provided on Binance.com and that it doesn't affect or change its relationship with users.
“To be clear, Binance has not been banned from the U.K, and the company is still free to offer spot crypto trading in the country.,” wrote Mati Greenspan, CEO of Quantum Economics, in his daily newsletter.
“This in no way indicates a policy shift from the U.K. regulators regarding crypto assets.”
Get used to countries banning derivatives itll make the next few months way easier
— 🐵👑 (@loomdart) June 28, 2021
Advertising and selling crypto assets does not require FCA regulation; it only regulates derivative products like futures, options, and contracts for difference (CFDs).
Ditching Registering with the FCA
Meanwhile, according to the FCA, a growing number of crypto asset firms are abandoning attempts to register with Britain’s financial regulator.
The number of firms that have withdrawn their applications has jumped by a quarter in less than a month, which shows data on registration. Around 64 have withdrawn their applications, up from 51 in early June.
Binance also withdrew its application in mid-May, an FCA spokesperson said on Monday.
Since January, crypto-related firms have been required to register with the FCA, which oversees compliance with laws designed to prevent money laundering and terrorist financing.
Only six firms have registered, with dozens currently being assessed but not yet deemed “fit and proper.”