Barclays Bank Blocks UK Customers’ Fund Transfers to Binance Exchange
Financial Conduct Authority’s recent edict only applies to Binance Markets Limited, or BML, which is a separate legal entity from the main global exchange that operates through Binance.com.
Barclays clients in the UK can no longer transfer funds to Binance after the bank indefinitely banned credit and debit card transactions to the exchange, according to recent reports. The apparent ban comes roughly two weeks after the UK’s Financial Conduct Authority (FCA) stated that Binance Markets Limited, the firm’s UK operations, was not holding proper authorization to carry out crypto operations in the country.
Barclays’ decision to stop facilitating British customers’ payments to Binance has been met with criticism by the cryptocurrency exchange.
Binance Spokesperson commented:
“We are disappointed that Barclays appears to have taken unilateral action based on what appears to be an inaccurate understanding of events.”
“The FCA notice relates to [Binance Markets Limited], which is a company incorporated in the UK and regulated by FCA.”
BML is a separate legal entity that doesn’t offer any products or services through the main Binance website. The FCA notice had no bearing on user deposits on the main Binance website, the spokesperson said, adding that, “We have always taken the security of our users’ money very seriously.”
Binance is open dialogue with Barclays to discuss the matter further:
“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.”
The Barclays UK Help Twitter page is routinely replying to frustrated consumers with copy-and-paste language stating: “It’s our responsibility to help protect your money. With this in mind we’ve taken the decision to stop payments made by credit/debit card to Binance until further notice, to help keep your money safe.” The account also directs users to the FCA homepage for more information.
What Will Happen Next?
It’s difficult to say what the next steps for Binance are both in the UK and globally.
Binance has been caught in a regulatory regulatory crossfire, with several jurisdictions around the world taking stricter measures to limit the exchange’s operations. Over the past two weeks, financial regulators in Japan and the United Kingdom have warned users about Binance’s regulatory status in their respective countries. Meanwhile, Binance announced it would no longer operate in the Canadian province of Ontario after regulators there implemented stricter regulations targeting cryptocurrency exchanges. Thailand’s SEC took the matters more seriously and filed a criminal complaint against Binance due to unregistered operations.
The firm has also had it’s headquarters move around substantially, before finally concluding that it is a “decentralized” company with no corporate headquarters.
The FCA has only approved five crypto companies to date, and while Binance had applied within the past year to join that list, the company reportedly pulled their own application after “intensive engagement” from the FCA.
The global exchange could likely face increased pressure from traditional UK institutions, but it remains to be seen what the long-term, lasting impact that regulatory scrutiny – in the UK and beyond – will do to impact Binance’s broader operations.
