Binance, one of the world’s largest cryptocurrency exchanges, has suffered another blow as its payments partner, Paysafe, announced that it will be ending its relationship with the exchange due to regulatory concerns in the UK.
In a statement released on Monday, Paysafe cited the “increasingly complex regulatory environment” in the UK as the reason for its decision to terminate the partnership. The company said that it had been monitoring developments in the regulatory space and had determined that the risks were too great to continue doing business with Binance.
The move by Paysafe is just the latest in a series of setbacks for Binance, which has come under intense regulatory scrutiny in recent months. In June 2021, the UK’s Financial Conduct Authority (FCA) ordered Binance to cease all regulated activities in the country, citing concerns over its compliance with anti-money laundering and counter-terrorism financing regulations.
Since then, Binance has been facing increased regulatory pressure from authorities around the world, including in the US, Japan, and Germany. The exchange has responded by announcing a series of measures aimed at improving its compliance practices, but it seems that these efforts have not been enough to reassure its partners.
The news of Paysafe’s decision to end its partnership with Binance is likely to further damage the exchange’s reputation and could lead to other partners following suit. Binance has yet to comment on the announcement.
