Following the footsteps of other financial institutions in the UK, Banco Santander, a large Spanish bank, has banned transfers of its customers’ funds to exchange Binance.
Following warnings from the Financial Conduct Authority, the U.K. operations of the Spain-based bank Santander will no longer allow its customers to transmit payments to cryptocurrency exchange Binance.
Many responses from Santander’s United Kingdom Twitter assistance account today stated that the bank had “decided to prevent payments” to the world’s largest cryptocurrency exchange in an effort to avoid fraud.
Customers were apparently informed that they would still be able to withdraw cash from Binance, but that the bank would be “following the FCA’s warning to consumers” by prohibiting payment withdrawals.
Many Santander account holders expressed dissatisfaction with the bank’s decision, including the following:
“As one of your long standing account holders, DO NOT tell me how I can spend MY money,” said Twitter user Brian Moore. “If I choose to use Binance then that is MY choice.”
A user from London contributed the following:
“You are putting innocent, well informed customers at risk of losing significant investment due to your binance block. How is that fair or responsible? People can become victim to fraud or losses in many things; betting, bank scams, phone scams. This is absurd.”
The Financial Conduct Authority, also known as the FCA, issued a warning to consumers last month, informing them that Binance Markets Limited would no longer be permitted to engage in any “regulated activity” in the United Kingdom.
The Financial Industry Regulatory Authority (FINRA) does not control cryptocurrencies such as Bitcoin (BTC) or Ethereum (ETH), but it does regulate certain crypto derivatives and that which it believes to be a security.
The Financial Conduct Authority warned investors to “be wary of advertisements on the internet and on social media that promise high returns on investments in cryptocurrency or cryptocurrency-related products.”
Following the notice’s publication, Binance reacted, claiming that the FCA mandate did not restrict the exchange — Binance.com — from conducting business in the United Kingdom since Binance Markets Limited was a separate legal entity from Binance.com.
Although several high-profile financial institutions in the United Kingdom have already implemented limitations on consumers that transact with Binance, others have not.
This Thursday, the British multinational bank Barclays informed its customers that it would be suspending any credit or debit card payments made to the cryptocurrency exchange until further notice, citing the FCA notification in its decision.
Starling Bank, situated in the United Kingdom, has appeared to mirror Santander’s attitude, stating that its customers can deposit cryptocurrency into their accounts, but that its “international currency provider does not support the purchase of cryptocurrencies.”
According to a response to a question about limits on the cryptocurrency exchange from a customer of Monzo, another British bank, its users are “welcome to invest in cryptocurrency.”