Barclays Bank has become the latest UK bank to block customers from making credit and debit card payments to crypto exchange Binance after it was banned by the Financial Conduct Authority (FCA) last week.
Barclays has been contacting customers that have used their cards for Binance payments that the bank will be blocking the payments until further notice.
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By GlobalDataThe Financial Conduct Authority (FCA), the UK’s highest financial auditing authority, issued a consumer warning on Saturday 26 June over the activities of cryptocurrency exchange platform Binance, saying that Binance Markets Limited cannot “undertake any regulated activity in the UK”.
The Binance is an exchange founded in 2017 with a strong focus on altcoin trading. The name “Binance” is a combination of the words “bitcoin” and “finance.”
Binance has quickly grown to become of the most popular cryptocurrency exchanges, offering trading in more than 150 cryptocurrencies and virtual tokens, including Bitcoin (BTC), Ether (ETH), litecoin (LTC), dogecoin (DOGE), and its own token Binance Coin (BNB).
Binance is besieged by customers, regulators, and banks
The FCA has also issued a warning about its website, Binance.com, and adverts promising high returns on crypto-based investments.
Shortly after the FCA’s ban, Binance disabled withdrawals for UK customers using bank cards after previously suspending the ability to make withdrawals directly into bank accounts.
A rapid payments processor, Faster Payments, also suspended Binance payments last week.
Since the FCA issued the warning over the safety and security of cryptocurrency exchange platform Binance, it has been under greater scrutiny from customers, regulators, and banks alike.
An increase in cryptocurrency warnings around the world
The FCA’s warning came as part of a wave of international action from state authorities across the globe who have grown alarmed by crypto’s rapid rise and centrality to emerging avenues for money laundering and organised crime.
The UK regulator’s tightening grip on Binance follows action by other regulators against the firm, with Japan having issued a warning to consumers about the exchange while authorities in the US and Germany have also expressed concerns.
Binance is also facing issues in the Cayman Islands, where it is domiciled, after the tax haven’s financial watchdog said the exchange is “not registered, licensed, regulated or otherwise authorised” to operate in the territory.
