Banks, Including Barclays, Are Banning Transfers to Crypto Exchange Binance Using Debit and Credit Cards
All of this has been done in the name of keeping the customers’ money safe while Binance says, “If our partners have any concerns, we would welcome a dialogue to discuss,” adding UK regulator FCA’s notice to BLM, isn’t about Binance.com at all.
Leading cryptocurrency exchange Binance took to Twitter to share that many of their banking partners are not allowing their users to use their services.
“It’s disappointing to learn that some partners are taking unilateral action to stop servicing Binance users based on what appears to be an inaccurate understanding of events,” said Binance on Tuesday.
In one such instance, one of the partners referred its users to an FCA notice that was addressed to Binance Markets Limited (BML), saying it was taking this action to keep people’s money “safe.” Still, Binance has “always taken the security of our users’ money very seriously,” they said.
As Binance informed its users of this development, many in the comments section pointed out how banks are not letting them make transfers to the platform.
Barclays is one such platform that is not allowing its users to make transfers to Binance and is stopping any payments made by credit and debit card to the exchange for an unspecified time period, all in the name of keeping the customers’ money safe.
“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,” reads the bank's automated message.
Other users noted that it's not just Barclays, but other UK banks like Natwest, Lloyds, and HSBC are also not allowing them to make deposits.
This has been after Binance reactivated GBP withdrawals last week after the exchange's customers were unable to deposit or withdraw British Pound (GBP) from its platform after the regulator in Britain cracked down on crypto activities in the country. Binance has been at the center of regulatory concerns for the past few weeks, with the UK as well as the Cayman Islands and Thailand SEC.
“The FCA notice was not about user deposits on http://Binance.com at all,” reiterated Binance adding, the notice relates to the UK incorporated BLM, which is regulated by the FCA. A separate entity, BML does not offer any products or services via Binance.com.
“If our partners have any concerns, we would welcome a dialogue to discuss.”
“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 advance the industry.”