Crypto exchange Binance suspended British pound deposits and withdrawals for new users yesterday, while the ban will apply to all other users on May 22.
A representative of the platform's financial partner Paysafe has said:
"We have concluded 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."
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The exchange has estimated the decision will affect less than 1% of the platform's users. Paysafe has also said the impact of the problem on the company's business is "small."
The UK unveiled a plan in February to regulate crypto trading and lending, with stricter rules and a broader scope.
Notably, Paysafe will continue to work with Binance in Europe and Latin America as it expands in those areas.