Top crypto exchange Binance has been under the regulatory radar worldwide for a couple of months now. Another blow to the company came on Monday when the global payments solutions provider Clear Junction announced that it was no longer processing payments for the crypto firm.
The press release stated:
“Clear Junction can confirm that it will no longer be facilitating payments related to Binance. The decision has been made following the Financial Conduct Authority’s recent announcement that Binance is not permitted to undertake any regulatory activity in the UK.”
This is following a recent move by UK’s leading banking institution Barclays, which stopped supporting customers transfers to Binance. Santander Bank too blocked payments to Binance soon after, citing customer protection concerns.
In their statement, Clear Junction further added,
“We have decided to suspend both GBP and EUR payments and will no longer be facilitating deposits or withdrawals in favour of or on behalf of the crypto trading platform. Clear Junction acts in full compliance with FCA regulations and guidance in regards to handling payments of Binance.”
These bans have come in light of the UK’s financial regulatory watchdog ordering a cease of all of Binance’s regulatory activities in the country. This was due to the exchange not being registered with the FCA.
Binance is facing similar blockades in several other countries. Not soon after UK’s announcement, Thai SEC filed a criminal complaint against Binance as it was operating without a license in the country. While Japan also issued a warning citing similar reasons, Cayman Islands’ Monetary Authority announced an investigation into Binance’s activities. Moreover, a South African bank, Absa, stopped the use of its credit cards for use on Binance due to non-compliance with the country’s regulations.
The saga had begun when the Canadian province of Ontario started to crack down on the exchange. Binance had to exit the province, declaring it as a restricted jurisdiction. Additionally, the exchange also had to suspend euro deposits via SEPA bank transfers last week.
Binance has been swift to act against the slew of regulations that it has been slapped with worldwide. Last week, Binance.us hired Manuel Alvarez, a former financial regulator from California, to work as its chief administrative officer to deal with compliance issues it is currently facing.
Moreover, Binance CEO Changpeng Zhao recently issued a letter stating that compliance is a ‘Journey’ and the company was ready to comply with local regulations. He did follow this with a hilarious tweet:
Do I look more regulated already? 😂 pic.twitter.com/AGTl4erl7H
— CZ 🔶 Binance (@cz_binance) July 12, 2021