The problems continue to increase for Binance, as it faces another problem with a payment provider that has decided to stop processing transactions for the leading cryptocurrency exchange.
Binance's regulatory challenges do not see an end
Global payment solution provider Clear Junction has announced that it has made the decision to stop facilitating payments related to the digital asset exchange.
According to the Financial Times' Adam Samson, the move was made in light of the UK's Financial Conduct Authority (FCA) statement that the cryptocurrency firm cannot engage in any regulated activity in the country.
Clear Junction is licensed by the FCA and has stated that it aims to act in "full compliance" with the authority's regulations vis-à-vis Binance.
At the end of June, the UK financial supervisor sent out a notice that Binance Markets Limited (BML) must discontinue its UK-based services. The cryptocurrency exchange stated that BML was a separate entity and that the platform's services would not be affected.
A statement from Clear Junction specified that the company has decided to suspend payments in British pounds and euros, while deposits and withdrawals are also no longer supported.
The payment provider is one of many entities that followed the FCA's move. The leading cryptocurrency exchange also suspended cash deposits made through the Single Euro Payments Area (SEPA) last week. While Binance said this move is temporary, 36 countries using SEPA have not been able to use the system to transfer money to the exchange.
It aims to protect customers' investments
UK bank Barclays also informed its clients that credit and debit card payments to Binance were no longer supported. Both Barclays and Santander, who also blocked deposits on Binance, said the move was to protect customers and "keep their money safe".
In addition to Binance's woes in Europe, regulators in Asia, including those in Thailand and Japan, have issued similar warnings to the cryptocurrency exchange.
It has been speculated that the increase in warnings Binance received from regulators is due to the collective complaints of investors who suffered huge losses during times of extreme volatility in the cryptocurrency market.
Since Binance operates in many jurisdictions around the world, without a headquarters, traders who have been impacted by the cryptocurrency exchange outages have struggled to figure out who to sue.
According to the Wall Street Journal, there is a group of over 700 traders who have teamed up with the help of a lawyer in France in an effort to recoup their losses.
And you buy and sell cryptocurrencies through Binance? Have you also been affected by the market crash of the last few weeks? Let us know what you think in the comments below.
