British bank Barclays has cut off customers and currency security funds transfer channels, because the behavior of the British financial supervisory Authority ( FCA ) said last month, currency exchange digital assets is not authorized to carry out security encryption currency business in the UK.
Barclays Bank informed customers on Monday that it has decided to stop making payments to Binance via credit/debit cards. The ban will be implemented immediately to ensure the safety of customers’ funds until further notice. The bank said: “This action does not affect customers’ withdrawals from Binance. This decision was made after the FCA issued a warning to consumers.”
The ban was implemented nearly two weeks after the FCA stated that Binance Markets Limited had no right to carry out crypto businesses in the country. The British regulator FCA issued a formal warning to Binance last month, prohibiting it from engaging in regulated financial activities, such as arranging traditional investment transactions, and stated that it has not been authorized to conduct cryptocurrency business in the UK.
In the eyes of several people familiar with Binance’s business model, Binance sometimes finds it difficult to align its compliance functions with its vast business, which includes digital currency, options, savings accounts, and stock token trading.
An executive of a payment company that helped Binance connect with traditional financial markets before severing its relationship with Binance revealed in an interview with the Financial Times that Binance often talks “on anti-money laundering and KYC (know your customers)” Rules, but has always been “resistant” to investing human resources in compliance issues.
Binance did not immediately comment on the blockade of Barclays Bank. It only stated that the market’s claim that it lacked sufficient compliance capabilities was “absolutely untrue” and that it has been taking its “legal obligations” very seriously.
“Binance is in dire straits”
Among the growing number of countries accusing Binance of not having the right to conduct regulated activities, the UK is the latest.
On June 25, the Japanese Financial Services Agency (FSA) issued a second warning to the exchange, stating that the exchange is still operating unregistered in the country.
On June 26, after the Ontario Securities Commission began to take legal action against unregistered exchanges, Binance Exchange announced that it would no longer provide services to users in Ontario.
Last week, the Securities and Exchange Commission of Thailand (SEC) filed a criminal lawsuit against Binance on the grounds that it was suspected of operating without a license in Thailand.
On Friday, the Cayman Islands Monetary Authority (CIMA) stated that although there are media reports that Binance has been incorporated in the territory, it has not obtained the permission of the regulatory authority to operate crypto in or within the Cayman Islands. Currency trading business.
Binance currently does not have a physical headquarters in the world, but only connects with traditional financial markets through a series of global branches. In Europe, its branch has reached deals with UK payment providers including Checkout.com and Clear Junction, which allows fiat currencies to flow in and out of its huge trading platform easily.
Fraud and money laundering are the “nails” of regulation
Global regulators have focused their attention on monitoring the financial channels between cryptocurrencies and the traditional financial system, and placed banks at the core of protecting consumers from fraud and preventing money laundering.
The focus on Binance has brought a new action, namely that the bank is reviewing the funding records of its customers and exchanges. Only five cryptocurrency companies have successfully registered with the FCA to accept anti-money laundering supervision, which is necessary for operating crypto-asset businesses in the UK. At present, dozens of companies are waiting for FCA approval.
According to FCA data, there are approximately 2.3 million people in the UK holding cryptocurrencies, and the vast majority of them use offshore exchanges such as Binance for trading. These non-UK platforms usually do not need to register with the FCA, even if they have UK customers, this also increases the difficulty of bank review.
HSBC said last week that it will not comment on individual cryptocurrency exchanges, but is “closely monitoring the development of these markets and regulatory changes.” Lloyds Bank stated that it does not allow credit cards to be used to pay for cryptocurrency transactions, and will use a “strong fraud monitoring program” to review all current related transactions. The processing scheme is also applicable to Binance.
NatWest Bank claims that after the occurrence of “high-risk fraud”, it has cut off payment channels to a small number of cryptocurrency asset companies and lowered the daily limit for customers to send funds to cryptocurrency exchanges (including Binance). Santander Bank stated that it is “reviewing” the issue of “payments to unregulated cryptocurrency exchanges.”
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Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/another-banking-giant-severed-diplomatic-relations-with-binance-barclays-prevented-british-clients-from-transferring-funds-to-binance/
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