Binance Users from Europe and UK React to Recent Restrictions

Binance users from Europe and the U.K. feel let down by both the exchange and their local financial institutions.

On Thursday, Italy’s financial authority joined a growing list of regulators warning the cryptocurrency exchange Binance is not authorized to provide investment services in the country.

Filippo Cappella, a 25-year-old full-time crypto investor based in Italy. had been using Binance for some time, certain it was safe and regulated. But since Thursday’s warning, he’s not sure he wants to keep using the platform.

“I read the news, and it’s not that great … [N]ow I’m thinking of moving my funds out of Binance,” Cappella said.

Binance, one of the largest crypto exchanges in the world, is facing heat from a number of regulators across the globe from the Cayman Islands to Thailand, with much of the scrutiny and restrictions concentrated in Europe and the U.K. The platform announced Friday that it will end support for tokens linked to stocks effective immediately. Some crypto investors based in the U.K. and Europe, like Cappella, are frustrated with the recent developments with Binance but don’t feel they will have a lasting impact on the future of crypto in the region.

For instance, Llovonne Norfolk-St George, a U.K.-based swimming teacher turned crypto day trader, says she has not been able to deposit any funds to Binance since June 28.

After the U.K’s Financial Conduct Authority warned on June 26 that Binance’s global affiliate, Binance Markets Ltd., isn’t authorized to operate in the country, British banks Barclays, Santander and Clear Junction suspended payments to the crypto platform, while Nationwide said it is reviewing its policy on cryptocurrencies to help protect customers. Meanwhile, the European Union’s Single Euro Payments Area (SEPA) appeared to have also blocked payments to Binance.

Binance is also shut off from the U.K.’s Faster Payments network.

“As a U.K. banking client, the [effect] of SEPA’s decision to prevent investors from moving money out of the banks and into [Binance] has absolutely cost me hundreds, if not thousands, of pounds in investment,” Norfolk-St George said, adding that it prevented her from topping up her account and taking advantage of the recent price fluctuations in crypto markets.

In April, Norfolk-St George transferred all of her crypto investments to the Binance platform, including a new investment of £20,000 (around US$28,000).

“The FCA Notice does not apply to the products and services provided through www.binance.com, nor does it change any arrangement with our users,” the statement said.

But a couple of days prior to publishing the statement, Binance U.K. users said that pound sterling deposits and withdrawals had been blocked by the exchange, although services were quickly reinstated.

A few days later, Binance CEO Changpeng “CZ” Zhao published an open letter, stating that compliance is a journey. By July 13, however, the platform had once again suspended withdrawals.

Chris Peake, a small crypto investor based in North West England, said that although he admires Zhao, he has removed all his funds from Binance until further clarity is provided to investors on where things stand.

Source – https://www.coindesk.com/