By
Chimamanda U. Martha
April 19th, 2024
Apart from HSBC, some other UK banks, such as Barclays, have already blocked payments to Binance.
British investment banking company HSBC Holdings plc (NYSE: HSBC) has joined the train of financial institutions in the UK, cracking down on popular crypto exchange Binance. Beginning from the 2nd of August, HSBC has stopped its UK customers from making payments to Binance cryptocurrency exchange.
HSBC Stops Payments into Binance
HSBC is disallowing its UK customers from using credit cards in making payments to the exchange platform “wherever possible.” HSBC’s recent action against Binance came after the UK Financial Conduct Authority (FCA) announced that Binance is not allowed to perform any kind of regulated activities in the country. According to the FCA, no entity in the Binance Group “holds any form of UK authorization, registration or license to conduct regulated activity in the UK”
HSBC has been contacting its UK customers to inform customers about the crackdown on Binance. The bank stated that the decision was made due to possible risks its customers may be facing. The financial institution added that it is passionate about protecting its customers. HSBC said it would continue to “monitor the situation” and update customers of any changes in the future.
A spokesperson of the bank also confirmed that the bank has communicated with its UK customers on certain changes:
“We won’t comment on individual securities or cryptocurrency exchanges. We place particular emphasis on high anti-money-laundering (AML) and know-your-customer (KYC) standards, and are closely following developments, client demand and changing regulation in these markets.”
UK Banks Block Customers from Making Payments into Binance
Apart from HSBC, some other UK banks, such as Barclays (LON: BARC), have also blocked payments to Binance. NatWest (NYSE: NWG) and Spanish banking giant Banco Santander (LON: BNC) also stopped payments to Binance in the UK.
Binance crypto exchange expresses displeasure with HSBC’s action. A spokesperson from Binance said the exchange is open to discuss any concerns the bank may have. The spokesperson added:
“We take our compliance obligations very seriously, and we are committed to working collaboratively with regulators to shape policies that protect consumers, encourage innovation, and move our industry forward.”
A few months ago, HSBC reportedly backlisted MicroStrategy (NASDAQ: MSTR) stock on its online trading platform. A Twitter user claimed to receive a message from the investment bank on the 29th of March stating that MicroStrategy’s stock is now considered a virtual currency product. Hence, the bank said it would stop new purchases or transfer-in of MSTR.
At the time of writing, HSBC is down 0.22% to $27.80 at pre-market trading. The bank surged nearly 28% over the last twelve months and gained 7.53% in its year-to-date record. Additionally, HSBC has added 0.54% in the last five days. On the other hand, the banking giant has declined 11.58% in the last three months and shed more than 3% over the past month.