Binance’s deal with Paysafe worries the British financial institution

The Financial Conduct Commission (FCA), the UK’s top financial authority, has raised concerns about Binance’s recent partnership with retailer Paysafe.

Binance’s latest partnership provides access to a comprehensive retail payment network through Foster Payment Services, a prominent service that cites regulatory concerns over cryptocurrency transactions. The FCA ordered Binance to suspend all services in June. Major banks such as Barclays withdrew their support for the deal, leading to the suspension of banking services.

Binance was able to offer customers deposits in British Pounds, then resumed Single Euro Payments transactions on January 26. Collaboration With Paysafe. This became a matter of concern for the Financial Supervisory Board, which deemed the transfer of money a “significant risk”. However, the financial regulator has not said much about this type of partnership. Information Financial Times.

“Paysafe is aware of our concerns and is constantly monitored to ensure it adheres to our approach to companies of this size. We will not comment further,” FCA said.

The cryptocurrency exchange said the FCA is working with post-announcements to make it a smooth exchange in the country. Binance and Paysafe did not respond to Cointelegraph’s requests for comment upon posting.

Binance’s 2021 regulatory problem began in the UK, where regulators issued multiple compliance notices against cryptocurrency exchanges, following which an injunction was issued. This was followed by similar regulatory announcements from Hong Kong, Thailand, the Cayman Islands, Japan and other countries. The cryptocurrency exchange company was able to repair its relationship with several Asian countries by the end of this year.

Regulatory frameworks for cryptocurrencies in the UK have yet to be finalized, but cryptocurrency trading has not been banned. However, the lack of a clear framework makes cryptocurrency businesses trust regulatory guidelines, which change from time to time. The current regulatory debate in the UK revolves around equity and decentralized finance lending. However, the country’s lawmakers are divided; Some want to make the UK a cryptocurrency hub, while others continue to oppose it.

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