Leading cryptocurrency exchange Binance has been facing regulatory challenges in the U.K, and the problems are only getting bigger. Spanish banking giant Santander has blocked its U.K customers from depositing funds into Binance.
Santander Blocks Binance Transactions
Spanish financial giant Santander announced yesterday that it would no longer allow its U.K customers to deposit funds into their Binance account. The bank said it had to block the transactions due to the Financial Conduct Authority (FCA) banning the cryptocurrency exchange.
In a tweet yesterday, Santander said keeping its customers is its top priority. Hence, it is preventing payments to Binance following the FCA’s warning to consumers. The bank said it is also concerned by the increase in the number of cryptocurrency funds in the U.K.
Binance continues to maintain that the ban issued by the FCA doesn’t apply to Binance.com, its global cryptocurrency exchange platform. The FCA banned Binance Markets Limited (BML), Binance’s U.K. entity, pointing out that the company doesn’t have the authorization to operate in the country.
Banks block Binance deposits
Since the FCA issued the ban on BML, some of the leading banks have blocked deposits to cryptocurrency exchanges. Barclays announced earlier this week that it would no longer allow its customers to fund their Binance accounts using its debit and credit cards. Natwest bank has decreased its daily limit to cryptocurrency exchanges, while Lloyds doesn’t allow its customers to fund their crypto exchange accounts using its debit and credit cards.
According to Binance, the ban doesn’t apply to Binance.com. A spokesperson for the exchange said they are disappointed with Santander’s decision since it considers their understanding of the event to be inaccurate. The spokesperson said, “We reiterate the fact that the FCA notice was not about user deposits on Binance.com at all.”
Binance’s regulatory troubles come at a time when the prices of cryptocurrencies are down by over 40% from their all-time highs. Bitcoin is still struggling to break past the $35k barrier, and it is trading at $32,822 at the time of this report.
This article was originally posted on FX Empire