HSBC Blocks Its UK Customers from Making Payments to Binance

HSBC​ has been informing its United Kingdom customers saying that the bank is blocking them from using bank-issued credit cards to make payments to crypto exchange Binance​. The decision follows the U.K. Financial Conduct Authority's (FCA) announcement in June that Binance isn't allowed to conduct any regulated activities in the country.

"We have made this decision due to concerns about the possible risks to you," said HSBC to its customers. "the FCA has recently issued a warning to consumers on the regulatory status of Binance in the UK. This also explains some of the risks of inversting in cryptoassets should things go wrong. "

"We have communicated to HSBC U.K. customers about changes in this crypto space that may impact them," an HSBC spokesperson said. "We won't comment on individual securities or cryptocurrency exchanges. We place particular emphasis on high anti-money-laundering (AML) and know-your-customer (KYC) standards, and are closely following developments, client demand and changing regulation in these markets," the HSBC spokesperson added.

Fazzaco reported that Binance is now going through a tough time​. From late June to now, more and more financial watchdogs have clamped down on this cryptocurrency exchange giant. Moreover, some banks and payment solution providers announced the suspension of processing transactions related to Binance or retail payments to Binance. Most recently, the Securities Commission Malaysia (SC) takes enforcement actions against Binance for illegally operating a Digital Asset Exchange (DAX) under its jurisdiction.

"We are disappointed that HSBC has taken this decision, and would welcome a dialogue to discuss any concerns that they have," said a spokesperson from Binance. "We take our compliance obligations very seriously, and we are committed to working collaboratively with regulators to shape policies that protect consumers, encourage innovation, and move our industry forward."