Following a wave of unfavorable stories surrounding Binance in recent weeks, another player has decided to disassociate itself from the exchange. One of Binance’s payment partners in Europe, Clear Junction, has suspended facilitating payments to the crypto exchange.
Clear Junction Cut Binance Off
In recent weeks, Binance has had to deal with a slew of regulatory problems. Following similar steps by Barclays and Santander, payments company Clear Junction has halted activity with Binance.
It claims that the Financial Conduct Authority’s recent notice regarding the exchange’s London-based entity is the reason behind the decision:
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
Clear Junction – which had been one of #Binance's key payments partners in Europe – says it has "decided to suspend both pound and euro payments and will no longer be facilitating deposits or withdrawals in favour of or on behalf of the crypto trading platform." pic.twitter.com/mGQqZWIbhU
— Adam Samson (@adamsamson) July 12, 2021
The firm statement concluded:
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.
The Financial Conduct Authority, or FCA, is in charge of financial regulatory oversight in the United Kingdom. The FCA ordered Binance Markets Limited, or BML, to cease operations in the United Kingdom by the end of June 2021. Binance pointed out BML as a different entity in response to FCA’s approach.
Following the FCA’s announcement, as well as other regulatory concerns about Binance, Barclays barred clients from using their credit cards for Binance transactions. As a result, Santander’s U.K. division opted to halt consumer interaction with the crypto exchange.
Related article | Binance Suspends U.K Ramping Stirring Suspicions Of A Crypto Crackdown
Binance Dipped In Bad News
Clear Junction’s decision to withdraw from the world’s largest crypto exchange is the latest in a string of negative news for Binance. Last Monday, both Santander UK and Barclays confirmed that all payments to Binance made through their banks will be blocked. This, like the Clear Junction judgment, came as a result of the FCA’s Binance Market Limited warning.
Santander UK, England’s branch of the Spanish bank, stated that “keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA’s warning to consumers.” Meanwhile, a statement from Barclays’ plainly states, “The decision has been taken following the FCA warning to consumers.” Barclays clarified that users will be able to withdraw funds and the ban only applies to debit and credit payments to Binance. “This action does not impact on the ability for customers to withdraw funds from Binance.”
Despite the rising negative attention, warnings, and corporations separating themselves from Binance, the exchange insists on adhering to protocol. The company contends that the FCA’s allegations are “categorically false” and that it “lacks sufficient compliance capacity.” Binance takes its legal commitments very seriously, according to the statement, and is sorry that Barclays and Santander UK “have taken unilateral action.” Binance hopes to conduct an open communication with the former collaborators to explore concerns.
BNB/USD still consolidating. Source: TradingView
Related article | Crypto Exchange Binance Blocks SEPA Transfers, Stops Euro Deposits
Featured Image from Pixabay, Charts from TradingView