Barclays announced yesterday that it was suspending debit and credit card payments from customers in the UK to Binance, citing the FCA’s recent action against the crypto exchange.
Binance has stated that Barclays’ decision to prohibit customers from buying cryptocurrencies on the exchange with debit and credit cards is a result of an “inaccurate understanding of events.” Barclays revealed yesterday that it was stopping card payments to Binance following the Financial Conduct Authority’s (FCA) warning that the exchange should not be operating in the U.K.
Binance has countered Barclays’ decision, stating that the FCA’s warning specifically referred to Binance Markets and “does not apply to the products and services provided through www.binance.com.” A spokesperson for the crypto exchange speaking after the announcement stated that the firm is highly disappointed that Barclays appears to have taken a unilateral action based on what appears to be “an inaccurate understanding of events.”
“We would welcome a dialogue with Barclays to discuss any concerns that they have and we hope that the above information helps to provide clarity on the matter,” the spokesperson added.
Barclays announced yesterday that it was suspending debit and credit card payments from customers in the UK to Binance, citing the FCA’s recent action against the crypto exchange. The British Multinational bank on July 5, sent text messages to its customers stating: “As you’ve made a payment to Binance this year, we wanted to let you know that we’re stopping payments made by credit/debit card to them until further notice. This is to help keep your money safe.”
Barclays however added that, customers can still withdraw funds from Binance, and that the decision is solely based on the FCA’s warning.
The FCA announced last week that, Binance Markets Limited “is not permitted to undertake any regulated activity in the UK.” Barclays’ decision will now affect over 24 million customers across the globe that will now be unable to move their funds to Binance to purchase cryptocurrencies. Binance has no offices in the UK but is able to route fiat money from its customers to its platform using a series of payment processors. According to reports, affiliates would not be able to process these payments now after the latest decision from Barclays.
Other institutions including Santander are reportedly weighing up the best resolution on the subject. Barclays is however not the first bank to block payments to crypto trading platforms as NatWest recently revealed that it has blocked payments to a small number of crypto firms and exchanges.
Binance is facing a criminal complaint filed in Thailand by the Thai Securities and Exchange Commission (SEC), claiming the exchange has no authorization to operate there. The exchange has also been under scrutiny by other regulators across the globe including in the Cayman Islands, Japan, the Canadian province of Ontario, and South Africa.