Barclays has blocked UK customers from moving funds to the digital asset exchange. The decision comes after the FCA said last month that Binance did not have licence to conduct business.
Clients of the London-based bank received notification on Monday of a ban on payments to Binance. The bank explained the ban, effective immediately, as a step to “help keep your money safe.”
“This action does not impact on the ability for customers to withdraw funds from Binance,” the bank stated. “The decision has been taken following the FCA warning to consumers.”
Barclays’ decision comes as UK banks debate whether to allow consumers to transfer cash to and from cryptocurrency exchanges. The officials cite worries about a lack of regulatory control and vastly disparate compliance requirements among exchanges.
Last month, the UK’s financial regulator issued a formal consumer warning regarding Binance. It stopped the exchange from engaging in regulated financial activities such as arranging traditional investment arrangements. It stated that the exchange lacked authority to conduct crypto operations in the UK.
Binance, which did not respond to new development, stated the claim of its lack of sufficient compliance is “categorically untrue”. And that it takes its “legal obligations very seriously.”
The organisation, with no formal headquarters, reaches the traditional financial market through a network of global affiliates. Companies have deals with UK-based payment providers to allow hard currencies to flow on to and off of their platform.
The attention focused on Binance indcates that banks are scrutinising payments to exchanges by their retail customers. Only five crypto companies have successfully registered with the FCA for anti-money laundering supervision.
Approximately 2.3 million people in the UK own cryptocurrencies, vast majority transacting through offshore exchanges such as Binance. Even if they have UK consumers, non-UK platforms do not register with the FCA.