According to the Financial Conduct Authority, the United Kingdom’s top financial regulator has sparked concerns about the new agreement between Binance and Paysafe. The FCA of the United Kingdom said that Binance’s recent relationship provides it with access to the wide retail payments network via Faster Payment Services.
This vital service was terminated for the cryptocurrency exchange due to regulatory concerns. In June, the FCA ordered Binance to cease all operations. Leading financial institutions, such as Barclays, have withdrawn their support from the exchange. This has resulted in the suspension of banking operations.
Following the cooperation with Paysafe, Binance was able to provide its customers with Sterling deposits once again on January 26. Binance also reopened Single Euro Payments Area transactions on the same day. In response, financial regulators have labeled the exchange a serious risk, citing the high level of volatility in the market. However, the FCA has also emphasized that it does not influence these collaborations.
How did the Regulatory Issues of Binance Begin?
The FCA noted that it’s clear that Paysafe understands their concerns. For this reason, they are closely monitoring it under its standard strategy for medium-sized businesses. In addition, there are claims that the crypto exchange is working with the FCA to become a compliant exchange after warnings.
It all began with the UK, where authorities issued a series of compliance warnings before ordering Binance to cease operations in 2021. Next, Hong Kong, Thailand, the Cayman Islands, Japan, and other jurisdictions issued similar warnings. By the end of the year, numerous Asian countries had reconciled with the crypto exchange.
Despite the lack of a regulated structure, cryptocurrency trading is legal in the United Kingdom; Crypto companies, on the other hand, must depend on the ever-changing recommendations issued by authorities since there is no defined structure in place. Decentralized finance (DeFi) lending and staking are now the subjects of regulatory debate in the United Kingdom. Lawmakers in the United Kingdom, on the other hand, are split. Some want to turn the nation into a crypto center, while others argue against it.