The key partner of the Binance cryptocurrency exchange, through which payments made in euros and pounds, Clear Junction, terminates cooperation in connection with the recent ban of the British regulator on the provision of some of the services by the exchange.
“Clear Junction acts in full compliance with FCA regulations and guidance in regards to handling payments of Binance”, it said.
Thus, the main reason is the case of the Financial Conduct Authority against the London office of Binance.
The British regulator at the end of June demanded that Binance cease its controlled activities in its territory. Earlier, Binance withdrew the application for registration as a crypto company from the FCA. So it will not be able to engage in unregulated activities, for example, servicing trading on the spot market.
Representatives of the Changpeng Zhao exchange, in turn, said that the new restrictions will not affect the operation of the site in the UK in any way. And the Binance Markets Limited division has nothing to do with cryptocurrency trading.
Clear Junction, provided exchange with the ability to accept and withdraw funds through Europe’s largest payment system SEPA and FPN. Binance announced last week that SEPA payments would be suspended for “reasons beyond the company’s control”.
The severance of relations with Clear Junction left Binance with no alternative solutions in the UK.
Now it seems like Binance needs to struggle to find a new provider as Clear Junction has left it to its fate.
Binance didn’t disclose details of the partnership with Clear Junction companies. But it is highly likely that the exchange will lose access to institutional liquidity. That is, Binance may lose trading volumes in the European direction.
Bad times for Binance
Binance is going through hard times right now, especially with UK regulators. The exchange has already lost several payment partners. It frozen deposits with Sepa, and now the withdrawal of pounds from the Faster Payments Service (FPS), carried out using Clear Junction, suspended.
The popular cryptocurrency exchange has accumulated problems in Europe and has now put its clients in a quandary.
Even earlier, Santander UK and Barclays prohibited their clients from making transfers from the exchange. Thus, the ban on transfers was also supported by a number of British banks.
Around the same time as the FCA, the Japan Financial Services Authority (FSA) issued a warning. That Binance is operating in the country without a license and does not have regulatory approval to operate in Japan.
Earlier this month, Thailand’s SEC accused Binance of illegal transactions. The Cayman Islands regulator announced that the exchange had no license, and the Polish regulator warned against trading on the site.
Binance hopes to have open communication with former partners and resolve the issues that have arisen.
Recall that after a series of statements from supervisory agencies, Changpeng Zhao, in an open letter spoke about the company’s plans to ensure regulatory compliance and protect customers.