How to Withdraw Pounds from Binance UK

Trying to get your Pounds off Binance UK? As per Google Keyword Planner, there has been a large increase month on month in UK residents searching for guidance/instructions on how to withdraw money or crypto from Binance.

If you’re a resident of the United Kingdom and seeking some insight on how to withdraw your hard-earned Pounds from Binance, you’re in the right place.

In this guide, we’ll share an insight into some methods. This is not to be perceived as investment advice. All readers are advised to complete their own independent research and or seek independent advice.

What has changed for UK residents?

Before we dive into the “how,” let’s talk about why withdrawing Pounds from Binance has become a common query in the UK.

The relationship with their local payment processor partner ended in mid-2023, reportedly due to regulations in the UK becoming much more strict.

As a result, depositing and withdrawing Pounds (GBP) from Binance has become more challenging recently.

Withdrawing/removing crypto from Binance

If you have a whole pile of crypto on Binance but you need to cash out into Pounds Sterling, then there are various approaches but the most practical process to follow is detailed below.

Probably the most user-friendly process to cash out in Pounds from Binance is to transfer your crypto to another exchange, like CoinJar.

This may mean that you have to change all your different cryptocurrencies into one crypto (say Litecoin, which is cost-efficient to move around than other cryptos like Bitcoin), then move the Litecoin onto CoinJar after complying with CoinJar’s account opening (including completing your assessment and the 24 hour cooling off period) and customer due diligence checks.*

NB Where you see the following symbol “*“, please note the standard risk warning at the bottom of the article.

CoinJar is registered in the UK, by the Financial Conduct Authority for anti money laundering purposes as a Cryptoasset Exchange Provider and Custodian Wallet Provider.

Once your crypto has been moved from Binance to CoinJar, you can then cash out in Pounds into your bank account.

Please note that CoinJar UK is not in any way associated with or acting on behalf of Binance and does not have any agreement or partnership with Binance.*

How to transfer crypto from Binance UK to CoinJar UK

-Log in to your Binance UK account.

-Locate the "Withdraw" section.

-Select the coin you want to transfer (e.g., LTC).

-In CoinJar, find your deposit address for the chosen coin.

-Carefully copy and paste the deposit address into the Binance UK withdrawal window.

-Double-check the address and amount before confirming the withdrawal.

Please note that information about how to withdraw from Binance was derived from the Binance web site at the time of writing this article (15 April 2024).*

Please note the Travel rule requirements in the UK means that crypto exchanges must obtain, hold, verify and transmit required originator and beneficiary personal data, immediately when conducting crypto transfers.

It includes instances where the originator and beneficiary are the same person (e.g. when the same person has accounts with different Crypto exchanges).

You will need to sign up as a CoinJar customer if you are not already.

Prove who you are

To sign up, you must verify you are a real human and submit a copy of your ID, such as a driver's licence, passport, or other identifiers.

According to local legislation, UK individuals must complete an assessment to demonstrate that they understand the risk associated with crypto. New UK customers must also wait 24 hours before being accepted and depositing new funds due to local restrictions requiring a "cooling off period."

Payment methods

Once your ID has been approved, you may open an account on the exchange. After this is done, you are able to deposit and withdraw typical everyday money like GBP (fiat) to and from your account.*

Cashing out in GBP

Once your chosen coin arrives in your CoinJar account, you can then sell it for Pounds.

-Look for the "Sell" option within CoinJar.

-Choose the coin you want to sell (e.g., LTC) and select GBP as the receiving currency.

-Enter the amount you wish to sell. then, confirm the transaction.

CoinJar will usually offer different ways to withdraw your Pounds, such as a bank transfer or time effective payments.

Choose your method. Then follow the instructions.

Please note the below for information on CoinJar withdrawal fees.*

Things to keep in mind

There will be fees associated with withdrawing your crypto from Binance UK and moving it to CoinJar. Make sure to research these fees before proceeding.

Crypto transfers can take some time to complete, depending on the network congestion.

You might be liable for capital gains tax on any profits made from selling your crypto. It's recommended to consult with a financial advisor regarding any tax implications.

Before attempting any of these steps, it's crucial to thoroughly research the process on both Binance UK and the beneficiary exchange platform, such as CoinJar's platforms. Additionally, staying updated on any regulatory changes or limitations is important.

Other processes for Binance withdrawal issues

P2P (Person-to-Person) transactions

-Find another individual who wants to buy your crypto using GBP.

-Agree on an exchange rate for the crypto-to-GBP conversion.

-The buyer transfers GBP to your bank account, and you send them the agreed-upon amount of cryptocurrency.

-P2P transactions bypass traditional exchanges and involve direct interaction between individuals.

-Be cautious, as the rate you receive may not be as favourable as market rates.

-Note that there’s a risk of the buyer reporting the transaction as fraudulent to their bank, potentially leading to a reversal.

-P2P transactions have inherent risks, including potential scams and deceptive practices.

If you urgently need to cash out, P2P might be an option, but exercise caution.

You could also use an escrow service when doing a peer-to-peer transaction. An escrow service holds money or other assets for both parties until the transaction is finished.*

Before transferring Crypto from Binance to CoinJar: Things to Note

When moving your crypto from Binance to CoinJar, keep these things to in mind.

Network selection

Cryptocurrencies operate on specific networks. Choosing the right one is crucial for a successful transfer. Here's a breakdown of some common networks and their tokens.

Ethereum (ETH): This network hosts various tokens, including ERC-20 tokens (built on Ethereum). If you're moving an ERC-20 token (like USDC), select the ETH network.

Solana: This is a separate blockchain with its own tokens. If you're transferring Solana (SOL), choose the Solana network.

Protection of individual Systems/Networks vs. cost

Your selection of Network impacts both protection and transaction fees. Networks that prioritise protection may have uncompetitive fees (e.g., Ethereum is well-established and protected but can be uncompetitively expensive during peak times). Better performing and more cost efficient networks like Solana might experience occasional outages.

Making the choice

ERC-20 Tokens: Use the ETH network for Ethereum or ERC-20 tokens. It's protected but potentially uncompetitive during peak times.

Solana Tokens: If you're moving Solana (SOL), use the Solana network for its speed and cost-effectiveness.

Verify any additional guidelines or network preferences of both Binance and CoinJar before transferring. Before moving a large amount, perform a small test transaction. Send a tiny portion of your crypto from Binance to CoinJar.

This way, you can verify everything is set up correctly and the network is functioning as expected.

Once the test transaction goes well, then you can proceed with the full transfer.

Double-check the recipient address (CoinJar) and ensure you're using the correct network. Initiate the transfer for the entire amount you want to move.

Read more here.

Conclusion: Navigating GBP withdrawals on Binance

As of May 2023, UK investors face challenges when it comes to withdrawing British Pounds (GBP) from Binance, there are alternative methods to access your funds. Other exchanges, like CoinJar, facilitate GBP withdrawals.