Barclays halts card payments for fund transfers to crypto exchange Binance

United Kingdom-based Barclays bank issued a notice to customers recently, informing them that debit and credit cards could not be used for payments to crypto exchange Binance. This move follows increased scrutiny on Binance from the financial watchdog in the country. 

Binance troubles continue in the UK

The Financial Conduct Authority in the United Kingdom recently stated that Binance Markets is not authorized to carry out any regulated activity in the country. The FCA argued that the Binance Group appears to be offering British customers services and products while failing to hold any form of required registration or license.

Shortly after, withdrawals and deposits were unavailable on the exchange for UK customers through the Faster Payments System. According to Binance, the ability to take out fiat through the system was “suspended for maintenance.”

A spokesperson for the crypto exchange said withdrawals through the payment system were reactivated earlier last week. The purchasing of digital assets through bank cards was also made available again. 

The exchange, headed by Changpeng Zhao, has increasingly received concerns from regulators worldwide over the use of cryptocurrencies for illicit activities, including money laundering. 

Despite reports of Binance saying that withdrawals have been reinstated on the platform, Barclay clients in the country can no longer transfer funds to the exchange after London-headquartered bank Barclays stopped credit and debit card transactions to the exchange until further notice.

Barclays has recently informed customers that they will no longer be able to deposit funds on Binance through card payments. The bank has blocked account holders from sending money to the exchange. 

Customers who have previously sent fiat to Binance have received text messages with a notice regarding the new decision on July 5. 

Barclays explained in the message it is committed to “help keep customers’ money safe.” In addition, the British bank told customers to check the UK financial watchdog’s website regarding Binance. The notice also did not mention other types of transfers, apart from credit and debit cards.

While deposits through credit and debit cards have been halted by the bank, customers can still withdraw funds from the exchange. 

Binance has found itself in hot water as regulators from countries including Japan, Canada and Thailand have also issued warnings to the exchange. The cryptocurrency platform even decided to halt operations in Ontario after it was accused of failing to comply with regulations in the province. 

The United Kingdom continues to tighten its stance on cryptocurrencies, as another British bank, Natwest, recently halted payments to several crypto firms. Santander is now reviewing its position on allowing money to be sent to digital asset exchanges.