British banking giant Barclays is prohibiting customers from using their debit and credit cards to make payments to the world’s largest cryptocurrency by trading volume, Binance.
Barclays appears to be sending text messages to their customers, informing them that the bank is halting payments to the crypto exchange until further notice, the Financial Times reported.
The message reads in part:
“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. For further info, please search FCA Binance online. We’re sorry for any disruption this may cause you.”
This comes in the wake of the United Kingdom’s Financial Conduct Authority (FCA) clampdown on Binance. Last month, the FCA warned that Binance’s U.K entity, Binance Markets Limited (BML) was not allowed to conduct any regulated activities in the country. Binance, however, asserted that the FCA notice would not interfere with its trading services in the U.K since BML is a separate legal entity that doesn’t offer any products or services. In other words, the notice only applies to BML.
Barclays bank’s customer care team is advising displeased Binance customers to visit the FCA website for more information regarding Binance and crypto investments in general.
Binance’s Regulatory Issues
Founded in China in 2017, Binance has struggled to find a place to call home. The exchange has also encountered numerous regulatory obstacles in recent months.
According to the Financial Times, a top boss at a payments company that assisted Binance expand to the broader financial market stated that the exchange “talks a big game on anti-money laundering and know-your-customer” rules but has been “resistant to throwing human resources at compliance issues.”
The FCA’s action against Binance comes as several regulators across the globe, including Malaysia, Singapore, Japan, Cayman Islands, and Thailand ramp up scrutiny of Binance.
At the same time, Binance — which has always maintained that it operates in a decentralized manner without any headquarters — has previously said that it takes its compliance obligations “very seriously”.