Renowned UK-based bank, Barclays, would no longer permit the forwarding of funds to Binance. The bank says that the crypto exchange is not legally entitled to carry out any services within the United Kingdom. The indefinite suspension, however, will not apply in the case of withdrawals to individual accounts at the bank.
Barclays has reached out to some of its customers that have a history with the exchange to take notice of the suspension and quit sending payments to it. The restriction was announced on Monday by the bank and would see debit and credit cards unable to make payments to Binance.
According to Barclays, the crackdown was in a bid to help safeguard customer funds. The UK bank took the action following the Financial Conduct Authority (FCA) ban on the leading exchange activities in the UK for noncompliance with regulatory requirements. The FCA demands to know the processes exchanges employ to safeguard user funds.
The Binance Saga and Regulatory Defaults
The United Kingdom is one amongst a legion of other nations that have strictly regulated Binance. The popular cryptocurrency exchange has been accused of several regulatory defaults.
Binance is undergoing investigation by the United States Internal Revenue Service and the Department of Justice as well. Japan alongside has cautioned the exchange a second time for refusing to register legally in the country.
Some weeks ago, Binance said it would be shutting down operations in the Canadian province of Ontario. The reason was linked to regulatory issues as Ontario took to legal actions against unregistered exchanges within its jurisdictions.