HSBC the Latest U.K. Bank to Block Payments to Binance
The bank is blocking credit card payments until further notice.
Key Takeaways
- HSBC has become the latest bank to block credit card payments to Binance.
- The bank stated "possible risks to customers" as a reason for implementing the restriction.
- Over the past month, Binance has taken steps to appease regulators.
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HSBC has informed customers that it will stop credit card payments to Binance “wherever possible.” It’s the third major U.K. bank to limit payments to the exchange.
HSBC Blocks Binance
Yet another U.K. bank has stopped users making payments to Binance.
HSBC started informing customers Tuesday that they would no longer be able to make credit card payments to the exchange, citing a warning issued by the U.K. Financial Conduct Authority (FCA) in June.
In the message, HSBC stated that it took the decision due to concerns about the possible risks to its customers. The announcement is similar to one issued by Santander at the beginning of July, citing the same FCA warning and using the same “wherever possible” phrasing.
After Barclays and Santander, HSBC is now the third major U.K. bank to halt credit card payments to Binance. The move is not entirely unexpected; HSBC indicated an aversion to cryptocurrencies in May when CEO Noel Quinn told Reuters that the bank would not deal with the asset class. HSBC had previously blocked customers from buying shares in MicroStrategy because they constituted “a virtual currency product” in the bank’s eyes.
Over the past few months, Binance has faced mounting regulatory pressure worldwide. In response, the exchange limited the amount of leverage available from 100x to 20x, reduced the daily withdrawal limits for unverified users, and cut futures and derivatives trading across Europe. By taking such measures, Binance looks to be rectifying some of the issues highlighted by regulators. The exchange’s CEO Changpeng Zhao outlined the company’s plans in a blog post, assuring customers and regulators that the exchange is taking steps towards regulatory compliance.
Although many U.K. banks have restricted customers from making payments to Binance after the FCA’s June warning, the exchange’s bottom line is unlikely to be affected. The U.K makes up a small proportion of Binance’s total user base, and it is not yet clear if banks in other countries will impose similar restrictions. Additionally, the exchange’s daily trading volume has remained stable at around $30 billion, showing that regulatory pressure is having little effect on Binance’s customers.
Disclaimer: At the time of writing this feature, the author owned BTC and ETH.
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