As it became known, HSBC has begun blocking credit card payments on Binance in England. This is another blow to the cryptocurrency exchange Binance; whose activities in the past few months have been under the scrutiny of regulators in different countries. They either impose penalties against the exchange or completely prohibit the operation of the crypto exchange.
For example, this was done by the Financial Conduct Authority of England. According to representatives of the FCA, the Binance exchange does not have any rights to conduct its work in the country until special permission.
Banking giant HSBC is the latest bank to cut payment channels for the platform.
The news that HSBC had stopped making credit card payments on Binance quickly spread. In particular, the well-known trader CryptoWhale indicated that he received such a message.
It states that the bank will indefinitely stop accepting card payments on Binance, as it fears possible risks.
The bank stressed that they are very closely following the regulator’s policy in relation to cryptocurrencies; and are not going to violate the legislation in this area. In addition, the bank’s representatives indicated that as the situation changes, they will inform their customers. HSBC UK cited a recent warning for Binance issued in late June by the UK Financial Conduct Authority (FCA), raising concerns about Binance’s regulatory status in the country.
Increased harassment of Binance by regulatory agencies around the world
It is worth recalling that similar steps have been taken by Barclays, which announced that it will stop all payments on Binance credit and debit cards to ensure the protection of its customers’ funds.
Following him, Santander UK announced such steps. The press service of the bank said that they will also block payments from user accounts on the exchange.
This also includes regulators from Japan, Thailand, the Cayman Islands and Malaysia. Malaysia even recently issued a 14-day ultimatum to Binance to shut down operations in the country.
Banks strictly follow the warnings of the FSA regulator and want their clients to be protected from possible fraudulent schemes. Thus, Binance faces another challenge. Exactly when banks will resume payments remains unknown.
Everything will depend on what the regulator’s policy will be in relation to the crypto exchange. So far, there have been no positive signals. If the situation continues to deteriorate for Binance, this could reduce the capitalization of the exchange and the churn of customers to other sites.
Such actions of banks and regulators once again indicate that the classical financial system still has enough tools to stop or seriously complicate the activities of crypto exchanges.
Notably, HSBC’s decision to block transfers to Binance comes as no surprise. The multinational bank previously prohibited clients from buying MicroStrategy shares on its trading platform due to the business intelligence company’s huge exposure to Bitcoin. Additionally, CEO Neil Quinn told Reuters in May that HSBC has no plans to use Bitcoin as an asset class due to volatility.