Customers have been reporting that Barclays, a British multinational universal bank, has been blocking payments to Binance cryptocurrency exchange over the last week. The financial services giant has confirmed to cardholders that Barclays debit/credit card payments to the cryptocurrency exchange will not be allowed until further notice.
One of crypto investment dashboard Wealth Kode’s cofounders, who goes by Lee on Twitter, posted a text notification from Barclays Monday that read:
“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.”
Along with some provocative language unfit for print here, Mr. Lee added, “I think you are going to lose a customer here. You can’t tell me where I can spend my money.” He wasn’t the only unhappy Barclays and Binance customer taking to Twitter to voice his frustration this week.
For further information on Binance and investing in crypto assets generally, please visit (the FCA website). We’re sorry for any disruption this may cause you. 2/3
— Barclays UK Help (@BarclaysUKHelp) July 5, 2021
Barclays is in damage control mode on Twitter as unhappy customers give negative feedback on the new policy. The bank’s social media account manager is referring Binance users to the Financial Conduct Authority of the United Kingdom’s website for “further information on Binance and investing in crypto assets generally.”
On June 26, the FCA warned consumers that Binance Markets Limited will no longer be allowed to engage in any regulated financial services in the United Kingdom. The British regulatory authority also gave some general guidance about investing in cryptocurrency:
“Be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products… While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information.”
Binance, however, clarified to users in a statement on July 1, that BML is a separate business and legal entity, and that the FCA’s injunction did not exclude Binance.com from conducting business with residents of the UK.
The FCA’s warnings have other UK banks spooked as well. British Monzo and Starling Banks have also reportedly begun blocking payments to Binance and other crypto exchanges.
The FCA and Barclays’ embargoes on Binance activity in the UK are the latest in a slew of regulatory actions taken against founder Changpeng Zhou’s liquidity market.
The crypto exchange has also faced new regulatory hurdles recently in Thailand, the Caymans, Canada, Japan, and the United States. Binance Coin (BNB) was trading just under $300 at the time of publication, some 24% down for the last 30 days.