On Monday, Barclays, one of the largest British banks by assets, said that it had stopped payments on debit and credit cards for cryptocurrency exchange Binance.
Customers received a phone text message from the bank to let them know about the relocation.
“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,” the message from Barclays states.
— Nicky walker (@Nicktheniceguy) July 5, 2021
Binance’s Recent Regulatory Woes
On June 26, the UK’s financial services regulator, the Financial Conduct Authority (FCA), ordered Binance to cease all regulated activities.
This essentially meant that Binance Markets, the sole regulated company in the UK operated by Binance, could not sell crypto derivatives. However, at the time, Binance said that the Financial Conduct Authority’s warning did not affect its website and services in any way.
Within minutes, clients of Barclays flooded social media to voice their outrage at the abrupt account suspension, with several vowing to cancel their accounts.
— JB 🍿 (@jbmartinez301) July 5, 2021
Regulatory compliance has presented a number of obstacles for the crypto exchange recently.
The Financial Conduct Authority (FCA) has joined an increasing number of authorities that have criticized Binance in the last several months. Regulators in Malaysia, Thailand, and Japan are included as well.
In addition, the firm urged Ontario-based customers to cancel down any current positions and offered them till the end of the year to withdraw their money.
Binance is not allowed to operate as a crypto exchange in or from the Cayman Islands, as the Cayman Islands Monetary Authority stated last week.
By contrast, although Binance, which continues to insist that it does not have a physical location, has previously emphasized the importance of its compliance requirements.
Binance’s History of Compliance Concerns
Binance was banned in the United States in 2019 due to regulatory concerns. Binance and other investors responded by establishing Binance.US, a second exchange registered with the US Financial Crimes Enforcement Network and intended to adhere to all relevant US regulations.
The US version has been commended for having an interface and feature set that is quite comparable to the global version. It is, however, presently prohibited in seven states.
Binance was under investigation by the US Department of Justice and the Internal Revenue Service for money laundering and tax fraud, according to Bloomberg News in May 2021.