Binance remains the biggest cryptocurrency exchange in the world. But, while it is a prominent label, it also concerns the FCA. More specifically, giving the exchange access to the UK’s Faster Payment Service is a topic of discussion all of a sudden.
Binance And Faster Payments
It makes sense for crypto exchanges to gain access to solutions that make it easier to onboard customers. One way to do so is by enabling solutions like Faster Payments. It is a payment solution in the United Kingdom that significantly cuts down transaction times. Binance is to gain access to this service, yet the FCA raises numerous concerns.
Back in 2021, Binance lost access to Faster Payments. That was the outcome of an intervention by the FCA. Moreover, Binance no longer offers regulated activities in the United Kingdom. Interestingly, Binance found a way to cut through that red tape through a partner with Paysafe, a US-listed service provider. The partnership allows users to deposit sterling into their Binance accounts once again.
Despite raising these concerns, there is little the FCA can do. Any company located outside the UK can serve brits without requiring FCA oversight. As such, Binance has found a clever way to cut out the decision-maker capable of preventing them access to Faster Payments. However, it appears the FCA set its sights on Paysafe, as the firm is now subject to “close supervision”.
All of this shows regulators remain uneasy regarding cryptocurrency exchanges and trading platforms. For now, there is little the FCA can do to harm Binance and its users directly. However, if the regulator takes an issue with Paysafe, that situation can change rather quickly. The coming months will undoubtedly get interesting on this front.
