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Binance, the world’s largest centralized crypto exchange, has just made a move that will likely affect numerous crypto traders that use its platform as a preferred exchange. Early this morning, July 7th, the exchange announced that it was forced to put euro bank transfers on hold, indefinitely.
From what is known, the exchange has disabled euro deposits via SEPA, although it pointed out that its users can still use credit and debit cards to transfer funds. The exchange insisted that the decision came due to circumstances that are out of its control, and that deposits may not necessarily be disabled permanently. However, at this point, it does not know when or if they will be made available.
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The exchange did not point out any specific reason or event that forced its hand in this situation. However, given that Binance recently saw regulatory action taken against it, it is not too big of a stretch to assume that this might be the reason.
Binance is facing problems in the UK
As some may remember, the FCA recently warned the public against Binance Markets Limited, saying that the company — which Binance pointed out as a separate entity — doesn’t have the license to conduct any regulated financial business in the UK. In the aftermath, the British financial giant, Barclays, announced that it will no longer allow payments to Binance’s main exchange, causing rage among its own users, as many have seen the move as the bank telling them how to spend their money.
Binance responded to this by expressing its disappointment that Barclays ‘appears to have taken unilateral action based on what appears to be an inaccurate understanding of events,’ as the exchange put it.
The regulatory scrutiny in the UK seems to be on a sharp rise, which already forced Binance to make a move that ultimately limited its users. In June, the exchange disabled its popular Faster Payments on-ramp — a feature that many in the UK have been using to withdraw GBP from the platform.
Fortunately, despite the issues in the UK, the exchange still remains as popular as ever in other regions, including Japan, Canada, and even the US.