Binance comes under threat again as Barclays reported it no longer support any transaction with Binance which happens to be one of the major cryptocurrency exchanges in term of daily volume.
Barclays announced in its resolution message to customer that it will no longer wire funds to binancestating the warning that the Financial Conduct Authority (FCA) issued against the cryptocurrency trading platform (Binance) last week.
This decision has however affect more than 24 millions of Barclays customer worldwide.
Barclays Stop customers from sending funds to Binance
One of the widely known and leading financial institution in the UK has announced to their millions of customers that it will no longer support the transfer of funds to Bianance .
the bank made the announcement effective immediately and made it known to their customers that the decision to no longer associate with Binance is for the protection of the customers funds.
The bank based the decision on the warning made by the Financial Conduct Authority (FCA) issued last week on the cryptocurrency exchange. The bank stating that:
“This action does not impact on the ability for customers to withdraw funds from Binance. The decision has been taken following the FCA warning to consumers.”
Just last week FCA made a statement on its official account that the Binance Market Limited “is not permitted to undertake any regulated activity in the Uk.” Due to this, some of the leading financial institution are reviewing what could be the best solution on the issues.
However Barclays has also joined the league of banks that has acted directly by stopping the transfer of funds to the crypto trading platforms.
Natwest also set a limitslast month on the daily transfer of money to cryptocurrencyexchanging platforms, Most of this measures were taken because of the alleged fraud increases associated with these operations.
Meanwhile another UK bank –TSB has also made it known that it will be reviewing to exert close measures.
Barclays recent measures is ascertain to affect more than 24 million customers worldwide.
These ciustomers can no longer move their funds to Binance in exchange for cryptocurrencies.
Although the bank has no offices in the UK, it uses many payment processors to route fiat money from its customers to its platforms.
However reports from news shows that these affiliates would no longer have access to process these transactions now.
Binance under Heavy eyes
Lately Binance has been on the news for some controversy as world regulators keep them under close scrutiny.
The cryptocurrency exchange is facing the complaint filed by the Thailand authority, according to the Thai Security and Exchange Commission (SEC) In which they stated the exchange company has no authorization to carry out their transaction in the country, similarly Japan, Canadian province of Ontario, South Africa and Cayman Island among others also issues some stern warning against the company.
There has also been a reports about the exchange company been investigated by the Department of Justice (DOJ) last May for some money laundering assumptions.
Binance has however worked to improved its system greatly to comply with existing regulations.
Not too long was it announced that the exchange company would be one of the first of exchanges to adopt Traveler, a tool that automate the Financial Action Task Force’s (FATF) Travel rule guide.
The crypto exchange also hires an Ex. Top regulator and acting head of the U.S Comptroller of the Currency, Brian Brooks at the end of April.
Do you think Barclays blocking customers from making transaction with Bianance necessary? Let us know in our comment section.