More Woes for Binance as UK’s Clear Junction Cut Ties

Following a wave of unfavorable stories surrounding Binance in recent weeks, another player has decided to disassociate itself from the exchange. One of Binance’s payment partners in Europe, Clear Junction, has suspended facilitating payments to the crypto exchange.

July 13, 2021, | AtoZ Markets – In recent weeks, the world’s largest cryptocurrency exchange Binance has had to deal with a slew of regulatory problems. Following similar steps by Barclays and Santander, payments company Clear Junction has suspended facilitating payments to the platform.

The decision was taken in response to Financial Conduct Authority's (FCA) warning against Binance, Clear Junction said in a statement on its website Monday.

"We have decided to suspend both GBP and EUR payments and will no longer be facilitating deposits or withdrawals in favor of or on behalf of the crypto trading platform," Clear Junction said.

The FCA is in charge of financial regulatory oversight in the United Kingdom. The British watchdog, as AtoZMarkets reported, ordered Binance Markets Limited, or BML, to cease operations in the UK by the end of June 2021. Binance pointed out BML as a different entity in response to FCA’s approach.

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Following the FCA’s announcement, as well as other regulatory concerns about Binance, Barclays barred clients from using their credit cards for Binance transactions. As a result, Santander’s U.K. division opted to halt consumer interaction with the crypto exchange.

Read also: Cayman Islands Regulator Flags Binance as Unauthorized Firm

Binance problems continue

Clear Junction’s decision to withdraw from the crypto exchange that is unregulated and has no headquarters, is the latest in a string of negative news for Binance. Last Monday, both Santander UK and Barclays confirmed that all payments to Binance made through their banks will be blocked. This, like the Clear Junction judgment, came as a result of the FCA’s Binance Market Limited warning.

Santander UK, England’s branch of the Spanish bank, stated that “keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA’s warning to consumers.” Meanwhile, a statement from Barclays’ plainly states, “The decision has been taken following the FCA warning to consumers.” Barclays clarified that users will be able to withdraw funds and the ban only applies to debit and credit payments to Binance. “This action does not impact on the ability for customers to withdraw funds from Binance.”

Despite the rising negative attention, warnings, and corporations separating themselves from Binance, the exchange insists on adhering to protocol. The company contends that the FCA’s allegations are “categorically false” and that it “lacks sufficient compliance capacity.” Binance takes its legal commitments very seriously, according to the statement, and is sorry that Barclays and Santander UK “have taken unilateral action.” Binance hopes to conduct an open communication with the former collaborators to explore concerns.

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