Binance, which has been embroiled in a string of damaging events amid a broader cryptocurrency crackdown, appears to have stumbled into yet another problem, after Barclays customers were notified that they can no longer make credit or debit card payments to the crypto-trading platform, following an earlier Financial Conduct Authority (FCA) mandate effectively barring Binance from operating in the UK.
On Monday, Barclays, a UK-based bank, issued messages to the affected customers, notifying them of the new ban. “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,” read the message, as cited by Business Insider.
However, Binance was quick to provide some clarification on the situation, saying that the FCA notice issued on June 26 only applies to Binance Markets Limited (BML), its UK-regulated entity, from issuing crypto derivatives. As a result, Binance said that FCA’s crackdown does not affect the services provided via the Binance.com website, because it is not incorporated or regulated in the UK.
In response, a Barkclays spokesperson explained to Business Insider that the bank will continue to monitor the duration of the ban, but said that “the safety of our customers’ money will be at the forefront of any decision.” The spokesperson also added that affected customers will still be allowed to withdraw funds from Binance.
Binance has been caught in the midst of a regulatory crackdown, as numerous regulators around the world tighten their grip on the operations permitted by crypto exchanges. Late last month, Binance revealed that it will no longer offer its services to customers in Ontario, after the province’s regulator implemented stricter laws on cryptocurrency trading. In the meantime, financial regulators in both Japan and the UK have issued warnings to users about the crypto exchange’s regulatory status in their respective jurisdictions.
But, as Binance inadvertently revealed, if your business is never incorporated, then regulators, by default, have no jurisdiction, right?
Information for this briefing was found via Business Insider, Barclays, Binance, and the Financial Conduct Authority. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.