HSBC bans UK customers from making payments to Binance
HSBC has announced it will stop UK customers from making payments to Binance, the world’s largest cryptocurrency exchange, “wherever possible.”
In a message sent to customers on Tuesday HSBC said, “we’ve taken this decision due to concerns about the possible risks to you. We take our duty as a responsible lender seriously and want to do everything we can to protect you.”
Major banks including Barclays, Santander and Natwest also blocked UK customers from making payments to Binance in July. The widespread ban comes after the Financial Conduct Authority (FCA) issued a warning that “Binance Markets is not permitted to undertake any regulated activity in the UK.”
Similar cautions have been issued by financial watchdogs in Hong Kong, Japan and the Cayman Islands who claim that Binance has been providing financial services without proper permissions.
While HSBC refused to comment on the individual case, a spokesperson for the bank said: “we place particular emphasis on high Anti-Money Laundering (AML) and Know Your Customer (KYC) standards, and are closely following developments, client demand and changing regulation in these markets.”
A spokesperson for Binance, which saw trade volumes in excess of £9.3bn over the past 24 hour period despite the decision, told CoinDesk that the company is “disappointed” by the ban and called for a “dialogue.”
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