Binance Suspends UK Deposits: What’s Next for Its Customers?

The UK customers of Binance.com woke up to the news that the crypto exchange was shutting down deposits and withdrawals in Sterling pounds offered through the Paysafe payment processor. Other deposit and withdrawal options are still available to the company’s UK clients despite the news. Here’s our list of the Best Bitcoin Wallets in the UK.

Today’s suspension of Sterling transfers is another setback for Binance.com, which suspended US dollar transfers in February after US authorities intensified their crackdown on crypto exchanges. The exchange, which Chinese billionaire Changpeng Zao operates, is being investigated by US regulators for facilitating money laundering activities and not respecting sanctions.

The elimination of US dollar and Sterling transfers is a massive blow to the company’s operations in western countries, which could reduce its customer base. We will likely see the ECB also crack down on Binance, forcing it to remove Euro deposits and withdrawals, alienating a significant economic block and customer base. 

The sustained attacks by western regulators on Binance may force it to abandon its operations in countries such as the United States, where its subsidiary Binance.us is under investigation, the UK, where the FCA has banned it from offering any services it regulates and the EU, which is also likely to ban it in future. 

The crypto exchange might have no choice but to retreat to Asian markets, where governments are also cracking down on Crypto, with the Chinese and Indian governments have banned crypto multiple times in the past. Binance’s future does not look promising, given the regulatory challenges it faces. 

Investors can check the Crypto Fear and Greed Index to gauge investor sentiment. 

Binance could be easily dethroned as the world’s largest crypto exchange as it is forced to reduce its geographical footprint by exiting many western countries. Binance has fiercely defended itself and found ways to keep operating in the UK and the US, but this may change soon. 

The outlook for the broader crypto industry is also in jeopardy as traditional banks work with regulators to limit the industry’s access to traditional banking services. Eliminating Sterling and US dollar transfers for Binance clients limits the exchange’s access to traditional banking services. 

The recent closure of Signature Bank, which provided banking services to many crypto firms, also made it more difficult for crypto firms to access traditional banking systems.

Furthermore, many UK banks, such as HSBC, Lloyds and Natwest, have imposed limits on crypto deposits for their customers, which will have a long-term negative impact on the industry. 

Bitcoin prices are trying to break above the crucial $25,000 level, with nay crypto investors watching the level to see if a new uptrend will begin. 

The BTCUSD price chart.

After a three-day rally, Bitcoin prices are attempting to break above the crucial $25,000 mark.