HSBC Joins Other Banks To Prevent Card Payments To Binance

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Binance is facing another setback as HSBC U.K. is preventing its customers from making payments to the crypto exchange’s platform.

Binance, the largest cryptocurrency exchange in the world, has been facing some regulatory issues from different financial watchdogs.

In June, the Financial Conduct Authority (FCA) issued an order for Binance to stop its regulated operations. However, the financial watchdog allowed U.K crypto investors to continue using the exchange’s online platform for regular trading.

Binance is also facing regulatory issues

Recently, banks like Santander and Barclays also prevented their customers from making payments to Binance.

“HSBC is blocking its U.K. customers from using credit cards to make payments to crypto exchange Binance,” the bank stated.

It has also contacted most of its customers using Binance to stop any further transactions with the exchange until further notice.

HSBC says it’s not commenting on cryptocurrency exchanges or individual securities. But says its emphasis is on know-your-customer (KYC) standards and protecting clients from high anti-money laundering activities.

A spokesperson for Binance stated that the company is disappointed with the decision of the bank to stop its customers from making payments to the exchange platform. The spokesperson added that the exchange is always committed to working with regulators to make sure the customers are protected in the market. But HSBC’s decision is not right at the moment. The spokesperson noted that the exchange would welcome dialogue to discuss any concerns that they have.”

A strong stance against cryptocurrency

HSBC is famous for its stance against cryptocurrency. The notice sent to HSBC UK customers pointed out an earlier warning from the FCA against local subsidiary of Binance. And it seems the bank is using the regulator’s stance on the crypto exchange to prevent its customers from transacting with Binance.

Binance is still facing serious backlash from other global financial markets regulators. Some Asian regulators in Asia have already taken action against Binance. Earlier this week, India opened a probe against the exchange for money laundering.

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