Santander UK is the latest bank to block payments to Binance

Quick Take

  • Santander UK’s clients can no longer send funds to Binance.
  • The move follows Barclays, which earlier this week banned debit or credit card payments to Binance.
  • Yesterday, Poland’s financial regulator cautioned against using the exchange, citing the FCA’s statement.

Santander UK, the British unit of the Spanish banking giant, is the latest financial institution to block payments to crypto exchange Binance.

"Keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA's [Financial Conduct Authority's] warning to consumers," Santander UK's support page tweeted Thursday.

Santander UK added that it has seen "a large increase" in U.K. customers becoming the victims of crypto fraud in recent months. About 2.3 million people, or more than 4% of adults in the U.K., hold cryptocurrencies, according to the FCA.

Late last month, the FCA banned Binance Markets Limited (BML) — Binance's U.K. entity — saying that the firm is not authorized to operate in the country. The ban, however, did not involve, the main crypto exchange platform. So it is unclear why banks have moved to block user payments to following the FCA's warning.

A Binance spokesperson told The Block, "We are disappointed that Santander appears to have taken unilateral action based on what appears to be an inaccurate understanding of events."

"We reiterate the fact that the FCA notice was not about user deposits on at all," they added.

Continuing blockages

Santander UK follows Barclays, which earlier this week banned debit or credit card payments to Binance until further notice. Lloyds Bank reportedly does not allow crypto payments on credit cards, including to Binance. NatWest too is said to have lowered the daily limit on how much money can be sent to crypto exchanges after a "high level of cryptocurrency investment scams."

Binance is losing fiat onramps from the U.K. following the FCA crackdown. Earlier this week, the exchange had to suspend customer deposits via the Single Euro Payments Area (SEPA) due to "events beyond our control." The SEPA network allows customers to send euros across 36 countries.

Besides the U.K. regulator, Binance has recently faced crackdowns from regulators around the world, including the U.S., Japan, Thailand, and the Cayman Islands. Yesterday, the Polish Financial Supervision Authority cautioned citizens against using the exchange, citing the FCA's statement, and highlighted the risks involved in trading cryptocurrencies.

This article has been updated with comments from a Binance spokesperson.

© 2022 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Trending Stories

Get Your Crypto
Daily Brief

Delivered daily, straight to your inbox.

The Era of dFMI for Institutional Digital Asset Markets

Post-trade in capital markets today operates primarily based on provision of balance-sheet to off-set counterparty risk, either directly or indirectly, via settlement agents, CCPs and CSDs etc.  The issues with this ‘hub and spoke’ model are well known, including the resulting massive duplication of data, bifurcated processes, concentration of risk and subsequent deployment of capital and resources that could be better utilized. 
Read Full Story
Sponsored Post

Retail traders are here to stay, says eToro's US CEO

On this episode of The Scoop, eToro's newly appointed US lead Lule Demmissie explained why she doesn't see retail's newfound presence in the market subsiding anytime soon and how eToro plans to capitalize on growing the business across cryptocurrencies and stock trading.
Read Full Story
Jan 26, 2022, 4:23PM UTC