HSBC Prevents UK Customers from Making Binance Payments

Kavya  |  Aug 4, 2021

HSBC, which is infamous for its anti-crypto attitude, has prevented UK customers from using bank-issued credit cards to make Binance payments. This is the latest bank that has hopped on the bandwagon of banning its customers from using payments to trade crypto on the platform.

Why HSBC Is Preventing UK Customers To Make Binance Payments?

Even though numerous bank customers first reported the move on Twitter, the British bank acknowledged the change on crypto payments earlier today but did not include Binance.

“We have informed HSBC U.K. customers about changes in the [crypto] industry that may affect them,” an HSBC representative told.

“We will not comment on specific equities or cryptocurrency exchanges.” We lay a special focus on strong anti-money-laundering (AML) and know-your-customer (KYC) standards, and we regularly monitor trends, client demand, and changing regulatory requirements in these markets.”

Banks And Regulators Are Opposing Binance

The bank is referring to a previous warning issued by the Financial Conduct Authority (FCA) against a local subsidiary of Binance in the notifications addressed to HSBC UK customers. 

The financial markets watchdog then emphasized the exchange's regulatory status and declared that it is not authorized to operate in the nation.

Binance, on the other hand, informed that the FCA merely highlighted Binance Markets Limited, a different legal company from Binance.com and that the principal exchange may continue to function in the nation.

The most recent financial crackdown is not the only one Binance is experiencing in the United Kingdom. 

Previously, Barclays and Banco Santander's British unit barred its clients from transferring funds to the cryptocurrency market.

“We are saddened by HSBC's decision and would welcome a conversation to resolve any issues they may have,” a Binance spokesman told the crypto newspaper.

Meanwhile, more and more global financial markets regulators are speaking out against Binance, giving warnings, or, in certain cases, initiating severe enforcement steps. 

The exchange, along with its local affiliate, is believed to be under investigation in India for aiding money laundering.

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