Finance

Barclays blocks customers from sending funds to crypto exchange Binance

Barclays customers in the UK have been blocked from transferring funds to cryptocurrency exchange Binance after the latter faced heat from global regulators.

The bank told customers they would no longer be able to send credit and debit card payments to Binance, following a warning by the UK regulator about the exchange’s operations in the country.

“As you’ve made a payment to Binance this year, we wanted to let you know that we’re stopping payments by credit/debit card to them until further notice. This is to help keep your money safe,” a text message to customers, seen by Financial News, read.

Customers were advised to “search Binance online” for further information.

The Financial Conduct Authority issued a warning against a UK division of Binance on 26 June, informing consumers that the digital asset exchange is not permitted to carry out regulated activities such as spot crypto trading in the country.

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Binance.com, which is based with the main group in the Cayman Islands, offers users the ability to buy, sell and trade cryptocurrencies and crypto-linked products.

“With effect from today, Barclays intends to stop credit and debit card payments to Binance. This action does not impact on the ability for customers to withdraw funds from Binance,” a Barclays spokesperson said.

“The decision has been taken following the FCA warning to consumers, to help keep our customers’ money safe.”

Other regulators have also ramped up scrutiny of Binance’s activities, with warnings being issued against the exchange in Japan and Thailand while an investigation is reportedly underway in the US.

In response to the FCA’s warning last month, Binance said it takes “a collaborative approach in working with regulators and we take our compliance obligations very seriously”.

“We are disappointed that Barclays appears to have taken unilateral action based on what appears to be an inaccurate understanding of events,” a spokesperson for Binance told FN on 6 July.

“We would welcome a dialogue with Barclays to discuss any concerns that they have.”

To contact the author of this story with feedback or news, email Emily Nicolle

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