Over the last week, a number of cryptocurrency users that were also customers of the British multinational bank, Barclays, reported issues with getting their payments to the crypto exchange Binance. It wasn’t long before the rumors started going around, with many assuming that Barclays is intentionally blocking payments to Binance.
Now, after a week of silence, the financial institution decided to come out and confirm the rumors, announcing to its cardholders that its debit and credit card payments to Binance will not be allowed. The bank did not specify how long the payments might be disabled, or if they will ever be enabled again.
Are you looking for fast-news, hot-tips and market analysis?
Sign-up for the Invezz newsletter, today.
All that is known is what the bank said to its customers, which became known to the public after one of the co-founders of a crypto investment dashboard, Wealth Kode, shared. The co-founder, how only goes by Lee on Twitter, posted a photo of the announcement that reads: “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. For further info, please search FCA Binance online. We’re sorry for any disruption this may cause you. Your Barclays Team.”
Mr. Lee, as well as many other Barclays customers, were enraged by the announcement, pointing out to the bank that it doesn’t have the power or permission to choose how its clients are going to spend their own money, with many announcing that Barclays is about to lose its clients.
Why did Barclays disable payments to Binance?
Angry customers have been growing in number with each passing day last week, and the announcement only further fueled their dissatisfaction with the bank’s decision. Meanwhile, the bank’s social media account manager has been responding mostly by referring clients to the Financial Conduct Authority (FCA) of the UK’s website.
The reason for the decision might be the FCA’s own warning against Binance Markets Limited that was published on June 26th. The regulator noted that the exchange will no longer be allowed to engage in any regulated financial services within the UK. The notice also addressed users, warning them of online adverts on social media that promise high returns on investments in the crypto industry.
Binance itself responded to this statement on July 1st, saying that BML is a separate business and legal entity and that the FCA’s move does not exclude Binance’s original exchange from providing services to UK users. Barclays, apparently, disagrees, given that it has decided to disable access to Binance on its own, without even warning the users first, which once again proves that users’ money is not theirs unless they are the only ones holding it and managing it.
67% of retail CFD accounts lose money