An announcement has been made by Barclays informing its customers that it won’t be allowing any of its customers to transact any funds through Binance. The bank was having difficulties in the transfer of funds from the bank to the exchange. The decision has been duly endorsed by the Board of Directors of the Bank through a resolution. The action taken by Barclays has globally impacted 24 million customers of the bank.
Barclays Bank is one of the top global financial institutions in the UK has more than 50 million customers across the world. The bank has made an announcement recently in which the bank has informed that it wouldn’t engage with Binance any further. This meant that the customers, who are transacting funds through Binance, would not be rendered wiring services of Barclays. The customers of the bank have been duly informed that the action has been taken in the interests of the customers. It was clarified by Barclays that the bank does not want to expose its customers to any financial loss.
Binance is bar far the biggest crypto exchange in the world when it comes to daily crypto trade volume. The firm has been subjected to scrutiny in various jurisdictions recently, especially in the UK region. In the UK, the Financial Control Authority (FCA) has taken an action against Binance and the firm is under scrutiny by FCA.
It was pointed out by Barclays that the action would not affect the customers’ ability to withdraw their funds from Binance. The customers can take out their funds from the exchange and put them into Barclays’s accounts if they so desire. However, the restrictions are limited only to the transfer of funds from the bank to the exchange.
The bank also apprised the customers that the action has been taken because an inquiry has been initiated by FCA against Binance. In case the findings of the investigation are found to the contrary, then Barclays’s customer could potentially face financial implications. In order to prevent any financial implications, the restriction of wiring funds into Binance has been put in place, told Barclays.
Reportedly the decision of Barclays was backed by the Board of Directors of the bank. The decision was duly passed by the Board through a proper resolution. It has been further reported that the restriction has impacted upon at least 24 million bank customers around the globe.
A dispute had arisen between Binance UK and FCA. The authority noticed that Binance was engaged in a regulated activity without obtaining permission from FCA. In the absence of such permission, it is likely that Binance would be directed to wrap up its business in the UK. In the alternative, it could be decided to settle the dispute by paying penalties which would be imposed by FCA.