Binance has informed its users in the United Kingdom that it will suspend deposits and withdrawals due to an issue with Skrill Limited.
To be specific, Binance sent out an email to its UK-based users in which it informed them that they won't be able to use British pound sterling (GBP) in their accounts, both on and off ramps because Skrill Limited will no longer support it. Skrill Limited is Binance’s UK-based partner bank that allows the company to use Faster Payments Service transactions. Binance has also decided to prevent new users from opening accounts with GBP deposits on the platform.
The GBP deposits and withdrawal suspension will come into effect on 22 May 2023. If users do make any GBP deposits after that date, Binance will refund them within seven working days. Binance officials cited by ibtimes.com revealed that they will provide more information on the suspension of withdrawal services at a later date.
They also revealed that they are currently working on an alternative and that only the GBP deposit and withdrawal functions via Faster Payments and card are affected. Even though the change affects less than 1% of Binance users, the company is working on an alternative solution and will provide further updates as the situation develops.
Binance introduced GBP trading pairs in 2020
To offer a bit more context on Binance’s predicament, it’s worth mentioning that the company launched GBP trading pairs in 2020 but in June 2021, the United Kingdom's Financial Conduct Authority ordered Binance Markets Limited to halt regulated activities that don’t have written consent.
Consequently, from June 2021 until March 2022, users were not able to use GBP to fund their Binance accounts. Binance later reintroduced GBP and EUR transfers by leveraging PaySafe's Skrill Limited.
Binance suspended USD deposits and withdrawals
In February 2023, Binance has announced that it will temporarily suspend deposits and withdrawals in US dollars. While company officials had not issued an official explanation for the decision, they did reveal their intention to shut down the service on 8 February 2023. Furthermore, Binance officials revealed that only 0.01% of the company’s monthly active clients actually use USD bank transfers, but they also expressed their willingness to reboot the service as soon as possible.
Binance US, which is regulated by the Treasury Department’s Financial Crimes Enforcement Network, was not affected by the suspension, which means that only non-US clients who transfer money to or from bank accounts in dollars felt the effects of Binance’s decision.
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Now, let's delve into the concepts mentioned in the provided article:
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Binance and Skrill Limited Partnership:
- Binance, a prominent cryptocurrency exchange, has a partnership with Skrill Limited, a UK-based partner bank.
- Skrill Limited facilitates Faster Payments Service transactions for Binance.
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Suspension of GBP Deposits and Withdrawals:
- Binance has informed its users in the United Kingdom about the suspension of deposits and withdrawals in GBP.
- This suspension is attributed to an issue with Skrill Limited, which will no longer support the use of British pound sterling on the Binance platform.
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Alternative Solution:
- Binance officials have stated that they are actively working on an alternative solution to address the suspension of GBP deposit and withdrawal functions.
- The company aims to provide updates as the situation develops and plans to refund users who make GBP deposits after the effective date.
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History of GBP Trading Pairs on Binance:
- Binance initially introduced GBP trading pairs in 2020.
- In June 2021, the Financial Conduct Authority (FCA) ordered Binance Markets Limited to halt certain regulated activities without written consent, leading to the temporary suspension of GBP usage on Binance until March 2022.
- GBP and EUR transfers were later reintroduced by leveraging PaySafe's Skrill Limited.
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USD Deposits and Withdrawals Suspension:
- In February 2023, Binance announced the temporary suspension of deposits and withdrawals in US dollars.
- The decision was made without an official explanation, but Binance officials expressed their intention to resume the service promptly.
- Binance US, regulated by the Treasury Department’s Financial Crimes Enforcement Network (FinCEN), was not affected, impacting only non-US clients using USD bank transfers.
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Impact on Users:
- The suspension of GBP and USD deposit and withdrawal services affects a small percentage of Binance users (less than 1% for GBP and 0.01% for USD).
- Binance is committed to providing solutions and updates to minimize the impact on affected users.
In conclusion, the provided information reflects the dynamic nature of the cryptocurrency industry and the challenges that major exchanges like Binance may face in maintaining currency support and regulatory compliance. The exchange is actively addressing these issues and working towards alternative solutions to ensure a seamless user experience.
