Debit and Credit Card Transfers Are Blocked
Under the new policy, Barclays customers can no longer send debit and credit card payments to Binance. The bank sent this message to customers: “As you’ve made a payment to Binance this year, we’re stopping payments made by credit/debit card to them until further notice. This is to help keep your money safe.”
Barclays noted that the new policy only affects outgoing transactions: “This action does not impact the ability for customers to withdraw funds from Binance.”
The action appears to be a response to the Financial Conduct Authority (FCA)’s decision to stop Binance from operating in the U.K last month. As such, other U.K. banks may follow the lead of Barclays’ bank. At least three other banks (Starling, Monzo, and NatWest) have reportedly introduced new policies.
In addition to the general rules set by the FCA, Barclays has expressed an explicit anti-Bitcoin stance. In January, it called Bitcoin “almost uninvestable from a portfolio perspective” due to the cryptocurrency’s rapid price fluctuations.
Will This Trend Harm Crypto?
The U.K. is not the only jurisdiction that is restricting cryptocurrency trading activities. Most notably, China introduced regulations in May that prevented banks from working with cryptocurrency and exchanges.
While various other banks have put restrictions on transfers to cryptocurrency companies at various times, the restriction is far from commonplace.
These prohibitions could make Bitcoin purchases more difficult for some investors. However, investors may feel reassured that, even if banks continue to block transfers, Bitcoin and crypto can be freely transacted once purchased.
Disclaimer: information contained herein is provided without considering your personal circumstances, therefore should not be construed as financial advice, investment recommendation or an offer of, or solicitation for, any transactions in cryptocurrencies.