Customers of Barclays, one of the leading banking institutions in the UK, can no longer transfer funds to Binance. All this, after the Financial Conduct Authority (FCA) said last month that Binance was not allowed to carry out any activity in the country.
Specifically, in a statement via text message, Barclays informed that it would stop payments made by credit / debit card to Binance. This and that to help keep your money safe.
However, the bank clarified: «This action does not affect the ability of clients to withdraw funds from Binance. The decision was made following the FCA’s warning to consumers».
To recall, on June 26, the FCA issued a consumer advisory that Binance Markets Limited (BML) could not conduct any regulated activity in the country.
«Binance Markets Limited is not currently authorized to carry out any regulated activity. Without the prior written consent of the FCA».
However, at that time, Binance claimed that the FCA notice would not affect its services in the UK, as BML is a separate entity.
Barclays prohibits payments to Binance
Ultimately, Barclays, the British multinational bank, notified its clients that it would no longer facilitate payments to Binance, one of the largest operators in the world.
«Hello, It is our responsibility to help protect your money. With this in mind, we have made the decision to stop payments made by credit / debit card to Binance until further notice. To help keep your money safe».
«To learn more about Binance and investing in crypto assets in general, visit FCA Binance Online. We apologize for any inconvenience this may cause you.».
Because of this, dissatisfied customers keep bombarding them on Twitter, with comments negatives about the new Barclays policy.
Disappointed by the bank’s unilateral action
As a result, Barclays’ decision has been met with criticism by Binance. After a spokesperson said the bank acted with an inaccurate understanding of the events.
«It is disappointing to learn that some partners are taking unilateral steps to stop providing services to Binance users. Relying on what appears to be an inaccurate understanding of the events».
In addition, Binance has said that it is “Categorically false” that it lacks sufficient compliance capacity and that it takes its legal obligations very seriously. He said he was disappointed in Barclays’ action and would appreciate a dialogue, to discuss any concerns they have.
«We take our compliance obligations very seriously. And, we are committed to working collaboratively with regulators to shape policies that protect consumers, foster innovation, and advance the industry.».
Importantly, in addition to the UK, Binance faces intense regulatory scrutiny in Canada, Thailand, the Cayman Islands, Japan, and other jurisdictions.
I retire with this phrase from Thomas Jefferson: «I sincerely believe, like you, that banking systems are more dangerous than armies».