Britain’s Financial Conduct Authority (FCA) has came out and said that Binance, one of the largest cryptocurrency exchanges in the world is not permitted to undertake any regulated activity in the UK.
Binance was operating in the UK, but it now cannot participate in any regulated activities without the prior written consent of the FCA. There seems to be some confusion over the regulated activities, however.
The regulated activities relate to futures contracts and options. NOT SPOT TRADING, which is NOT regulated in the UK.
It has been speculated that the UK Banks are seeing huge amount of payments heading out of the banking system and onto crypto exchanges and they have been looking for an excuse to block crypto exchange payments for quite some time.
They have now placed a full ban on customers using their accounts to fund their Binance account altogether, regardless of whether they are spot trading or futures trading.
This means and have banned their customers from sending Debit / Credit card payments and bank transfers to Binance. There have also been some reports of some banks blocking withdrawals from Binance to their current accounts too.
This is also true for other exchanges too and has been for a while. Its not just Binance. HSBC has been blocking payments to and from all crypto exchanges since the start of the year and my own account with the Nationwide Building Society Works with Coinbase and Binance (Or at least it did until yesterday) but its never worked with Crypto.com or HitBTC
After Barclays started blocking payments yesterday to Binance a lot of other UK banks followed suit and started blocking payments to Binance also, with the reasoning being they want to protect their customers from losing money on unregulated markets.
Imagine that, a grown man or woman putting their money into a bank then the bank telling them what they can and cannot spend it on. Makes you wonder why anyone would even want a bank account in the first place.
What banks can I use with crypto exchanges in UK ?
With all the confusion over what UK bank debit / credit cards actually work to buy crypto I’ve created this chart to list what works and where.
I am still waiting on feedback to complete the chart but I will update results as I get them. If you know of any exchanges that UK cards work on feel free to let us know in the comments below and we will update accordingly.