Barclays Bank recently informed its customers of a ban on using debit and credit cards for payments to cryptocurrency exchanges, including Binance. This decision is associated with cryptocurrency regulation in the UK.
Barclays' Policy on Crypto Payments
Barclays directly notified customers of the new policy, stating that it was implemented "to help keep your money safe." In a message posted on social media, the bank said: "We’ve made the decision to stop payments made by credit/debit card to Binance until further notice." This restriction does not affect users' ability to withdraw funds from Binance.
Context of FCA Decisions
Barclays’ restrictions are linked to a public notice from the FCA that took effect on June 27. In this notice, the FCA barred Binance Markets Limited from offering regulated financial services in the UK. The regulator has previously expressed warnings about the risks of crypto investments, focusing on the dangers associated with online advertising and promises of high returns.
Binance's Response and Implications for Users
In response to the FCA actions, Binance stated that Binance Markets Limited is a distinct legal entity from Binance.com. Barclays joins other institutions such as TSB and Santander in fully blocking transfers to crypto exchanges. After Barclays' actions, a Binance spokesperson expressed disappointment, noting that "the bank appears to have taken unilateral action based on what seems to be an inaccurate understanding of events."
Barclays' ban on card payments to cryptocurrency exchanges reflects growing regulatory concerns about the safety of financial operations in the crypto industry. As banks implement such measures, customers are facing restrictions in accessing cryptocurrency services.
