Binance in troubled waters over growing regulatory issues

The world's biggest crypto exchange, Binance recently suspended the withdrawal of British pounds sterling and Euros.

Binance in troubled waters over growing regulatory issues

The world's biggest crypto exchange, Binance recently suspended the withdrawal of British pounds sterling and Euros, as Clear Junction, a payments provider, suspended their transactions.

Reports via social media revealed United Kingdom-based customers received emails in line with the suspension of GBP withdrawals.

In a press release statement issued by the payment provider, it spoke on the rationality behind such decision by acting in full compliance with Financial Conduct Authority’s regarding Binance.

The FCA had earlier instructed the United Kingdom division of Binance from doing business in the country and further compelled the exchange to show that it has stored records of all of its UK customers, and handed over to the regulator when necessary.

In addition, the Cayman Islands incorporated exchange is facing investigation by the Justice Department and Internal Revenue Service, in the world's largest economy efforts rooting out illicit activities that often thrives in the unregulated market.

As part of the investigation, financial regulators in charge of tax offenses and money laundering cases have sought information from people with insights into the operations of the world's largest crypto exchange.

The company known for not having a single corporate headquarters, faces increased regulatory challenges with Chainalysis a leading blockchain forensics disclosed, transactions tied to criminal activity passed through Binance than any other crypto exchange.

In addition, Binance continued to face growing regulatory challenges after the Polish Financial Supervision Authority recently released a statement on the Crypto exchange, stressing that Binance operations were not regulated in the Central European country, further strengthening bearish sentiments on the broader market spectrum.

However, in an open letter, Changpeng “CZ” Zhao, founder of Binance, reiterated that the world's biggest crypto exchange had the basic requirements, thus expanded its global compliance team, advisory board, and saw more regulations as positive signs.

On January 5, Binance reported a new record of more than $80 billion in daily volume across its spot and derivatives platforms.