March 28, 2024

Binance faces regulatory headwinds

Binance faces regulatory headwinds

In terms of volume, Binance crypto exchange is the largest digital asset exchange in the world. The Chinese company has originally had problems with regulators in the past. Now they face headwinds internationally.

About six months ago, the UK’s Financial Markets Authority (FCA) imposed a ban on crypto derivatives. Most exchanges had to restrict their products locally. But the Financial Conduct Authority (FCA) was not satisfied with the actions taken by Binance. Presented last week organizer festivalthat Binance Markets Limited is “not authorized to conduct any regulated activity in the United Kingdom”. The incident in the UK was not an isolated incident; Other regulatory authorities have also commented on the world’s most popular cryptocurrency exchange.

Big Barclays Bank Bans Binance

In response to the Financial Conduct Authority (FCA) announcement, Barclays – the UK’s third largest bank – immediately began blocking payments to the trading platform. They are not the first to do so. Last month, the National Bank of Westminster (NatWest) also introduced a limit on daily transfers to cryptocurrency exchanges. This is due to the alleged fraud numbers associated with these operations. Britain’s TSB Bank is examining similar measures.

“It is our responsibility to protect your funds. With this in mind, we have taken the decision to suspend credit/debit card payments to Binance until further notice. This is how we help keep your funds safe. For more information see the FCA statement.” Answer Barclays

The decision by Barclays affects more than 24 million customers worldwide. They are now no longer able to send their funds to Binance to purchase cryptocurrencies. With no offices in the UK, the company uses a number of payment processors to route paper money from its customers to the platform. These partners are no longer able to process these payments.

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No Euro payments via SEPA

Due to the events, the cryptocurrency exchange will temporarily suspend euro deposits from one of the most important European payment networks. SEPA aims to coordinate euro payments across the region. It enables consumers to send their euros to thirty countries cheaply. Binance also usually accesses SEPA via payment brokers.

Deposit suspension is necessary due to “events beyond our control”. All deposits made via SEPA in the meantime will be returned within 7 business days, according to Binance. SEPA recalls are not affected by this suspension, He said Binance told Reuters.

Binance under global investigation

Binance was recently vetted by global regulators. In Thailand, for example, a Complaint Submitted. According to the Thai Securities and Exchange Commission (SEC), the exchange is not authorized to operate there. Similar warnings were issued in the Cayman Islands, the Canadian province of Ontario, South Africa and Japan.

Binance is also being investigated by several regulatory authorities on suspicion of money laundering. This is why the exchange strives to strengthen its systems in order to fully comply with the existing regulations. Recently it became known GivenThat Binance will be one of the first exchanges to launch Traveler. This is a tool that automates compliance with the Financial Action Task Force (FATF) travel rules. In addition, at the end of April, the company appointed Brian Brooks, a former chief regulator and acting president of the US Comptroller of the Currency (OCC).