Binance resumes fiat withdrawals via Faster Payments in UK

Binance

Binance has uploaded a notice to its U.K. website stating that Binance Markets Limited is not licensed to undertake regulated activities in the United Kingdom.

Leading decentralized crypto exchange by trade volume Binance has restored British pound withdrawals using the Faster Payments network.

On June 28, Binance uploaded a notice revealing that withdrawals via Faster Payments, a popular United Kingdom-based inter-bank payments platform, had been suspended for maintenance.

The news came the same week the U.K.’s financial regulator, the Financial Conduct Authority (FCA), ordered Binance Markets Limited and the Binance Group to cease all regulated activities relating to derivatives and securities in the country. This led many to infer the sudden and seemingly opaque suspension of Faster Payments could signal further troubles ahead for the exchange.

According to a June 30 report from Reuters citing a Binance spokesperson, withdrawals via Faster Payments were reinstated on June 29 alongside bank card purchases for U.K. users.

The spokesperson also said that the FCA’s apparent crackdown does not impact the ability of British residents to access the services on its website.

A notice posted to the FCA’s website from last year stated that Binance Markets Limited should not “promote or accept any new applications for lending by retail customers through the operation of its electronic lending system,” or promote Binance, BinanceUK, or EddieUK as being FCA-regulated platforms for cryptocurrency trading.

Binance.co.uk uploaded a notice stating that Binance Markets Limited was not permitted to undertake regulated activities in the United Kingdom, in compliance with the FCA’s demands:

“Binance.com is a platform providing various products and services to global customers. Some of these products and services are regulated outside the UK, while others are not. Binance Markets Limited is a UK based company which has not yet carried on any business. BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITIES IN THE UK.”

In June 2020, Binance announced it had acquired an “FCA-regulated entity,” noting that Binance.UK would be operated by Binance Markets Limited moving forward.

Binance

Faster Payments is no longer an option for Binance customers in Britain amid increasing regulatory pressure.

Binance’s U.K. customers are currently unable t use the popular local payments provider, Faster Payments, to withdraw British pounds (GBP) from the exchange.

On Monday, June 28, a notice on the Binance website declared that GBP withdrawals via Faster Payments had been “suspended for maintenance,” according to the Financial Times.

Faster Payments is a payment provider used by major banks to process near-instant payments. It has become one of the preferred channels for moving fiat currencies to and from the Binance exchange.

According to the report, U.K. users can still use traditional methods such as bank cards to move money from the exchange. However, the exchange acknowledged that the suspension of Faster Payments presents a significant hurdle.

The move follows a June 27 order from the U.K.'s Financial Conduct Authority (FCA) demanding Binance cease all regulated activities in the country following a review of its operations.

“Binance Markets Limited is not permitted to undertake any regulated activity in the UK,” said the FCA’s letter, noting that no other entity in the Binance Group holds any of the necessary permits to operate in the United Kingdom.

On June 28, the exchange countered that Binance Markets Limited is “a separate legal entity and does not offer any products or services via the Binance.com website,” adding: “The FCA UK notice has no direct impact on the services provided on Binance.com.”

Binance launched its U.K. trading platform for institutional and retail investors under the supervision of the FCA in June 2020.

Faster Payments