Barclays Stops Payments to Binance
The railing against Binance continues in the United Kingdom, this time at the hands of Barclays, one of the world’s largest Tier 1 banks.
This afternoon, Barclays began to prohibit its British customers from making debit card or credit card payments to Binance, representing the latest move to marginalize the company following last week’s issuance of a warning by the Financial Conduct Authority (FCA), which is the regulatory body that oversees all non-bank financial markets activity in the United Kingdom.
The warning, issued on June 26 by the FCA, stated that Binance Markets Limited is not permitted to undertake any regulated activity in the UK and that as a result of the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.
This warning in itself should be enough to demonstrate the importance of choosing a properly regulated cryptocurrency exchange and decentralized financial services provider, however the curtailments by Barclays serve as a further reason why customers should ensure that the cryptocurrency platform that they choose is fully regulated and able to continue and further its operations within its jurisdiction.
In keeping with the FCA’s line of thinking, Barclays Bank told Reuters today that its decision to prohibit customers from making debit or credit card payments to Binance was “to help keep your money safe”.
Following the FCA warning, Binance tweeted that the FCA’s publication “has no direct impact on services” it offers.
The bank has been contacting customers who have used their cards on Binance this year advising them that it is stopping payments until further notice, according to tweets, and has sent emails to various cryptocurrency news sources to confirm this new policy.
According to mainstream news sources, some financial markets regulators in other markets including Japan and Canada have produced similar warnings in recent weeks against Binance, with one in Thailand even threatening criminal charges.
The current upward surge in demand for cryptocurrency related services by members of the public internationally, along with the massive interest in decentralized financial services (DeFi) by financial technology firms, investors and in some cases, national governments should serve as a very important message regarding the necessity of regulation for cryptocurrency firms.
CoinMetro understood this clearly from the start, having acquired its cryptocurrency exchange license from the Estonian authorities at the time of the company’s establishment, which not only serves to keep client money safe, but also ensures that CoinMetro can continue to evolve and be sustainable as the cryptocurrency world grows and expands its remit across all areas of decentralized financial services.
For example, alongside its cryptocurrency exchange license, CoinMetro has an Electronic Money Institution (EMI) license, which regulates it as a payments institution, and within the next twelve months, CoinMetro’s plans to become an MTF will come to fruition, hence the company will be a fully diversified, multi-product venue for all aspects relating to cryptocurrency and electronic financial services, making it a cryptocurrency exchange and challenger bank combined.
As regulators begin to demonstrate their awareness and interest in allowing cryptocurrency companies with regulation to flourish, the opposite is happening to those without regulation as mainstream regulators in Tier 1 financial markets jurisdictions begin to generate warnings such as the one by the FCA, which directly led to Barclays banning payments to Binance by UK customers.
We live in an age in which the cryptocurrency community is developed, cutting edge and mature enough to build the financial markets future correctly, and that includes the proper structuring of trading venues, exchanges and payments services.