Santander has announced to its UK customers that it will block payments to crypto exchange Binance. The bank claimed this measure was “for protection”.
Santander will block Binance payments starting today
A response from Decrypt’s email to Santander stated, “…we will stop payments from Santander accounts to Binance wherever possible, starting July 8, 2021…”.
The email continues by quoting the Financial Conduct Authority’s recent consumer warning stating that Binance Markets Limited is “not allowed to engage in any regulated activity in the UK”. Speaking to Decrypt, a regulatory spokesperson said there were “clearly problems” with Binance’s approach to anti-money laundering procedures.
According to the FCA spokesperson, “UK consumers can continue to interact with the Binance Group, which is a broader, international group of Binance companies that is not formally decentralized”. This means that UK citizens can continue to trade on the Binance exchange.
Santander has previously announced that it is reviewing its policy towards cryptocurrency exchanges, reporting that there has been a “huge increase in customers looking to buy cryptocurrencies” in recent months.
A number of UK banks have taken steps in recent weeks to limit account holders’ access to Binance itself, or crypto exchanges more generally. Last month, NatWest limited transfers to crypto exchanges, while earlier this week, Barclays blocked account holders from sending funds to Binance. And yesterday, the Nationwide Building Society announced that it is reviewing its policies towards cryptocurrencies.
Amid increasing pressure from regulators, Binance CEO Changpeng Zhao called for “clear regulations” while claiming that “compliance is a journey”.