The bank said it was “following the FCA’s warning to consumers” by blocking payments into cryptocurrency.
The UK business of Spain-based Santander Bank will no longer allow its customers to send payments to Binance, citing a warning from the Financial Conduct Authority.
According to several posts yesterday on the British Twitter account Santander, the bank decided to “block payments to the largest cryptocurrency exchange in the world” to prevent fraud.
The bank has reportedly told clients that it will still be able to withdraw funds from Binance, but that “in line with the FCA’s warning to clients,” transfers will be blocked.
Hey, in recent months we have seen a huge increase in the number of UK customers becoming victims of cryptocurrency fraud. Keeping our customers safe is a top priority, which is why we decided to block payments to Binance following the FCA’s warning to consumers. ^ Tech
Santander UK Help (@santanderukhelp) July 8, 2021
Many Santander account holders expressed negative opinions about the bank’s decision:
“Mint Old account holder, don’t tell me how I can spend my money” Brian Moore, Twitter user wrote.
“If I choose to use Binance, that is my decision.”
London user he added:
“You are putting innocent, knowledgeable customers at risk of losing significant investments because of your Binance block. How is this fair or responsible? People can fall victim to fraud or loss in many ways; betting, bank fraud, phone fraud. This is ridiculous.”
Last month, the Financial Conduct Authority, or FCA, warned consumers that Binance Markets Limited can no longer engage in any “regulated activity” in the UK.
Although financial supervision does not regulate cryptocurrencies such as bitcoin (BTC) or ether (ETH), it is subject to some crypto derivatives and what they consider to be securities.
The FCA called on investors to “be wary of advertisements on the internet and social media that promise a high return on investment in a crypto-hardware or crypto-related product.”
Binance later replied to the notice, saying that the FCA warning does not prevent the exchange – i.e. Binance.com – from doing business in the UK, as Binance Markets Limited is a separate entity.
Meanwhile, some high-profile British financial institutions have already imposed restrictions on customers transacting with Binance.
This week, British multinational bank Barclays notified its customers that it will suspend credit or debit card payments to cryptocurrency until further notice, also citing the Financial Conduct Authority’s announcement.
UK-based Starling Bank appears to have followed Santander’s position, saying that while its customers can deposit crypto into their accounts, “the international foreign exchange provider does not support the purchase of digital currencies.”
However, the other British Monzo Bank owns it today Tellfor customers „I am happy to invest in a crypt”, in response to a question about stock exchange restrictions.
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