The crypto firm has been in and out of regulatory trouble in Britain

Binance, one of the biggest crypto asset exchanges in the world, has once again been compelled to stop transactions in pound sterling.

The crypto company has been in and out of regulatory issues in the UK. It was earlier barred from UK activities by the Financial Conduct Authority (FCA) in 2021.

Binance restarted its UK business in February last year through in collaboration with the FCA-regulated fintech company Paysafe.

Though, London-based Paysafe is now pulling out of the deal, meaning new customers in the UK will not be able to start trading with Binance. Moreover, all UK services are set to be suspended from May.

Paysafe said that the ‘UK regulatory environment in relation to crypto is too challenging to offer this service at this time and so this is a prudent decision on our part taken in an abundance of caution’.

Binance said that it would ‘ensure that affected users are still able to access their GBP balances’.

The crypto industry has faced heightened attention from UK regulators as the country gets ready to launch its crypto regulatory framework. Recent controversies in the industry, particularly the collapse of FTX, have increased the pressure on lawmakers to adequately regulate digital assets.

Binance and the Financial Conduct Authority have long had a difficult relationship. The financial watchdog expressed worries about Binance’s return to UK trading in 2022 through Paysafe.

Our concerns about Binance remain. We received a notification of this business partnership but have limited powers to object to arrangements of this kind, a Financial Conduct Authority spokesperson said at the time.

Banks have also been cracking down on crypto transactions. This week NatWest restricted crypto payments for its customers over scam concerns. Challenger bank Starling ceased supporting all crypto transactions in 2022.