July 6, 2021, | AtoZ Markets– One of the big banks in the UK, Barclays Bank, has suspended debit and credit card payments from its UK clients to Binance.
The London-based bank notified the customers on the suspention of debit and credit card payments to Binance. Barclays told his clients this rule would apply immediately, and was intended “to help to keep your money safe”.
“This action does not impact on the ability for customers to withdraw funds from Binance,” the bank said. The bank sent text messages to customers earlier in the week saying:
“As you made a payment to Binance this year, we wanted to inform you that we will stop payments made by credit/debit card until further notice. We do this to keep your money safe.”
Binance Is Having Big Problems
Binance is a company dedicated to trading digital currencies, options, savings accounts, and stock tokens.
The group, which lacks a formal headquarters, connects to the conventional financial market through a series of global affiliates. In Europe, entities have forged deals with UK-based payments providers including Checkout.com and Clear Junction.
Remember that last month the FCA issued a warning to consumers that “Binance Markets Limited cannot conduct any regulated activity in the UK”.
Likewise, NatWest recently said that it has blocked payments to a small number of crypto companies, while Santander is reviewing its position, according to the FT.
In addition to blocking certain firms, NatWest said it had lowered the daily limit on how much money customers could send to cryptocurrency exchanges after a “high level of cryptocurrency investment scams”.
The attention around Binance has brought fresh signs that banks are scrutinising payments by their retail customers to exchanges. Just five crypto companies have successfully registered with the FCA for anti-money laundering supervision.
What Did the Binance Say?
After the decision made by the bank, Binance has said that it is “categorically untrue” that it lacks sufficient compliance capacity and that it takes its “legal obligations very seriously”.
Binance said that it was “disappointed that Barclays appears to have taken unilateral action” and that it “would welcome a dialogue with Barclays to discuss any concerns that they have”.
Approximately 2.3 million people in the UK own cryptocurrencies, according to the FCA, and the vast majority use offshore exchanges such as Binance for their transactions.
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