Barclays Blocks Binance Funds To ‘Maintain Your Cash Protected’

In short

  • UK financial institution Barclays has stopped clients from sending cash to Binance.
  • The transfer comes after the FCA revealed a shopper warning a few Binance firm acquired within the UK.

UK financial institution Barclays has advised clients that they are blocked from sending their funds to crypto trade Binance so as to “maintain your cash secure”, in keeping with the Financial Times

“As you’ve made a cost to Binance this 12 months, we wished to let you realize that we’re stopping funds made by credit score/debit card to them till additional discover. That is to assist maintain your cash secure,” a notification reportedly despatched to Barclays clients reads. 

The transfer comes within the aftermath of the UK’s Monetary Conduct Authority’s crackdown on Binance. Final month, the FCA issued a shopper warning in opposition to Binance Markets Restricted, an organization acquired by Binance so as to facilitate the launch of a bespoke UK crypto trade. 

The FCA advised Decrypt that whereas it can not ban Binance, it did what it may to guard customers by prohibiting Binance Markets Restricted from offering “regulated actions” within the UK.

Binance’s compliance woes

The crypto trade has run into a variety of hurdles on the subject of regulatory compliance in latest months. 

Per the Monetary Occasions, an govt at a funds firm that helped Binance connect with the broader monetary market mentioned the crypto trade “talks an enormous sport on anti-money laundering and know-your-customer” guidelines, however remained “immune to throwing human assets at compliance points.” 

The FCA was additionally involved concerning the firm’s method to cash laundering guidelines. An FCA spokesperson advised Decrypt that the regulator “clearly has points with requirements in that space.” 

The FCA joined an already lengthy record of regulators which have taken a essential stance in opposition to Binance in latest months. This contains regulators in Malaysia, Thailand and Japan

Final week, the Cayman Islands Financial Authority introduced that Binance will not be “registered, licensed, regulated or in any other case approved” to function as a crypto trade “from or inside” the Cayman Islands. 

Binance, then again—which continues to say it has no headquarters—has beforehand said that it takes its compliance obligations “very critically.”

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