Cryptocurrency news | Jul 21, 2021
Binance suspends UK withdrawals
By RTR Dennis
Cryptocurrency platform Binance has suspended UK withdrawals, leaving investors unable to access their cash.
Customers were told that bank withdrawals through the Faster Payments network have been “temporarily suspended”.
Faster Payments, a money transfer company, has ended its partnership with the crypto exchange, according Financial News.
This has caused the latest block on withdrawals, which comes just over two weeks after Binance first suspended UK customers' access to cash.
A Binance spokesperson said: "We are working as quickly as we can to make payment services available to our users."
Binance would not say when withdrawals are likely to resume.
Binance is a cryptocurrency exchange platform for trading various cryptocurrencies.
As of April, Binance was the world's biggest bitcoin and altcoin crypto exchange by volume.
Its users complete more than 1.4million transactions per second, according to its website.
Investing in cryptocurrencies is a very risky business and making money is never guaranteed.
You should make sure you know the risks and only invest money that you can afford to lose.
5 risks of crypto investments
The Financial Conduct Authority (FCA) has warned people about the risks of investing in cryptocurrencies.
- Consumer protection: Some investments advertising high returns based on cryptoassets may not be subject to regulation beyond anti-money laundering requirements.
- Price volatility: Significant price volatility in cryptoassets, combined with the inherent difficulties of valuing cryptoassets reliably, places consumers at a high risk of losses.
- Product complexity: The complexity of some products and services relating to cryptoassets can make it hard for consumers to understand the risks. There is no guarantee that cryptoassets can be converted back into cash. Converting a cryptoasset back to cash depends on demand and supply existing in the market.
- Charges and fees: Consumers should consider the impact of fees and charges on their investment which may be more than those for regulated investment products.
- Marketing materials: Firms may overstate the returns of products or understate the risks involved.
Cryptocurrencies are highly volatile, so the value of your investments can go down as well as up in the blink of an eye.
There is also no guarantee that you can convert crypto assets back into cash, as it may depend on the demand and supply in the existing market.
As always, never invest in something you don't understand.
The suspension is the second time the crypto exchange has stopped its UK investors from withdrawing their cash.
Binance paused withdrawals in June after the UK financial regulator announced a crack down on the company.
Last month the Financial Conduct Authority ordered Binance to end all activities in the UK, prompting the temporary suspension.
But despite the crackdown, Brits wishing to buy and sell cryptocurrencies using the platform were still able to do so.