Binance’s recent cooperation with Paysafe, a retail payment processor, has sparked concerns with the Financial Conduct Authority (FCA), the UK’s main financial regulator.
The Financial Conduct Authority of the United Kingdom said Binance’s latest relationship allows it access to the huge retail payments network via Faster Payment Services, a vital service that stopped due to regulatory concerns for the crypto exchange. In June, the FCA ordered Binance to cease all operations. Banking services have been under suspension as a result of prominent institutions such as Barclays withdrawing their support for the exchange.
Following its cooperation with Paysafe, Binance was able to reintroduce Sterling deposits. And resume Single Euro Payments Area transfers on January 26. This has raised concerns among financial regulators, who have labelled the exchange a “serious risk”. According to the Financial Times, the financial regulator also stated that it has little influence in these types of collaborations.
“Paysafe is aware of our concerns and is subject to continued strict oversight, as is our policy for companies of its size”. “We are unable to speak further,” FCA stated.
The crypto exchange has stated that it is working with the FCA to become a compliant exchange in the country following the FCA’s warnings.
The crypto exchange behemoth had mended its ties with a number of Asian countries
Binance’s regulatory problems in 2021 began in the United Kingdom. Where regulators issued repeated compliance warnings against the crypto exchange before ordering it to cease operations. Hong Kong, Thailand, the Cayman Islands, Japan, and other jurisdictions followed suit with identical regulatory warnings. By the end of the year, the crypto exchange behemoth had mended its ties with a number of Asian countries.
Although cryptocurrency regulatory frameworks in the United Kingdom are still under defining, crypto trading is not prohibitive. However, the lack of a clear structure forces crypto businesses to rely on authorities’ standards, which are always changing. In the United Kingdom, the current regulatory debate centres on decentralised finance lending and staking. Nonetheless, lawmakers in the United Kingdom are split; some want to turn the United Kingdom into a crypto hub, while others continue to argue against it.