Barclays has announced that it would no longer facilitate wire transfers to Binance, one of the world's top cryptocurrency exchanges by daily volume. In a statement to customers today, the bank stated that it was having trouble sending payments to Binance. The banking behemoth cited the Financial Conduct Authority's (FCA) warning against Binance released last week. On a global scale, the action affects more than 24 million Barclays customers.
Wires to Binance are being blocked by Barclays
Barclays, one of the UK's largest banks, has declared that it will no longer support wire transfers to Binance. This notice went into force immediately, and the bank explained that it was made to protect customers' money. The FCA issued a warning on the bitcoin exchange last week, prompting Barclays to take this action. The bank stated:
This action has no impact on customers' ability to withdraw funds from Binance. The decision has been taken following the Financial Conduct Authority (FCA ) warning to consumers.
The FCA announced last week that Binance Markets Limited is “not authorised to engage in any regulated activity in the United Kingdom.” As a result, a number of institutes are researching the best answer to this problem. However, Barclays is not the first bank to take direct action against crypto trading sites by restricting payments. Natwest also imposed a daily transfer limit to cryptocurrency exchanges last month. Because of the suspected fraud figures associated with these operations, this is the case. Another UK bank, TSB, said it was looking at taking similar steps.
Barclays' recent action will affect more than 24 million clients around the world. These consumers are no longer able to transfer payments to Binance in order to purchase cryptocurrency. Despite the fact that it has no operations in the United Kingdom, the company employs a number of payment processors to transfer fiat money from its consumers to its platform. According to reports, these affiliates will be unable to execute these payments at this time.
Binance is being scrutinised
Binance has recently been scrutinised by international regulators. A criminal complaint has been lodged against the exchange in Thailand. The exchange does not have permission to operate in Thailand, according to the Thai Securities and Exchange Commission (SEC). In the Cayman Islands, Ontario, Canada, South Africa, and Japan, similar warnings have been issued against the exchange.
Also, last May, there were reports that Binance was being probed by the Department of Justice (DOJ) on suspicion of money laundering. To comply with existing rules, the exchange has sought to strengthen its systems. It was recently revealed that it would be one of the first exchanges to implement Traveler, a solution that automates compliance with the Financial Action Task Force's (FATF) Travel Rule. Brian Brooks, a former senior regulator and acting head of the US Comptroller of the Currency, was also employed by the corporation towards the end of April.
What are your thoughts on Barclays' decision to prevent consumers from sending money to Binance? Let us know in the comments section.