Customers at Barclays have been barred from making deposits to Binance this week. The move was prompted by the FCA announcing that Binance isn’t authorised to carry out business with the crypto field in the UK.
This decision will stop customers from making deposits to the Binance platform but won’t have an impact on any withdrawals from Binance. It essentially means that Barclays customers will be unable to make any new investments with Binance, but they won’t lose access to the investment that they have already carried out.
This was confirmed by a Barclays spokesperson who commented:
This action does not impact on the ability for customers to withdraw funds from Binance.
Barclays’ decision is expected to cause other banks to decide on how they will handle Binance. Both Natwest and Santander have made comments related to crypto exchanges recently, with Natwest taking the decision to decrease the daily limit that customers could make to crypto exchanges. This news from Barclays, as well as the decision by the FCA, could lead to further restrictions being put into place.
While there are currently many rumours around the reasoning behind the FCA’s decision to ensure Binance isn’t allowed to trade within the UK, there is no confirmation of this from the FCA themselves.
The only comment the FCA has made on the matter at this moment in time comes from a statement on their website:
Due to 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.
Binance has stepped in to deny many of the rumours surrounding the current block from Barclays. With the company making it clear that it takes all of its regulatory requirements seriously. The crypto exchange platform has expressed the desire to talk with Barclays about the current block and attempt to come to some kind of compromise.
Barclays looks unlikely to take any steps towards unblocking Binance transfers until the FCA clears the company to trade in the UK.
Other banks may follow suit, which could lead to Binance deciding to leave the UK market. Customers will have to keep a close eye on the situation as it unfolds, with the FCA currently the most crucial party in how Binance will operate in the UK in the future.
Having gained a degree in economics, Alan entered the world of financial services starting his career in London and then moving to New York for a number of years. His first post at a City bank saw him establish a reputation as an forex trader. Having recently returned from New York after eight successful years, Alan is now a prosperous trader in his own right concentrating on commodities and forex.