HSBC to halt credit card payments to Binance exchange

The bank sent a message to its customers informing them that it will stop credit card payments to Binance until further notice

UK financial institution HSBC reportedly communicated on Tuesday that it had blocked its customers from transacting via credit cards with Binance, according to several tweets. The bank cited the Financial Conduct Authority’s (FCA’s) decision to ban Binance Markets Limited’s operations in the UK as cause for the action. Since reaching the decision, HSBC has contacted its customers to inform them of the soon-to-come change.

“We have communicated to HSBC UK customers about changes in this [crypto] space that may impact them,” a spokesperson from HSBC said.

Refusing to call out specific names, the spokesperson explained that the bank retained a particular interest in know your customer standards and anti-money laundering.

“We won’t comment on individual securities or cryptocurrency exchanges. We place particular emphasis on high anti-money-laundering (AML) and know-your-customer (KYC) standards, and are closely following developments, client demand, and changing regulation in these markets.“

The move by HSBC adds to the number of banking institutions in the UK that have restricted customer transactions with Binance. Spanish Banco Santander and UK-native Barclays became the first major banks to block user transactions for the same reason. 

Binance has been on the receiving end of regulatory decisions from various countries as rules continually become established for crypto markets. Japan had warned early in June that the exchange was operating illegally in the country, and before long, the aforementioned FCA warning was issued.

HSBC’s decision was not entirely surprising, though, considering the current nature of the crypto markets and the bank’s attitude towards crypto. HSBC CEO Noel Quinn had, in May, said that the bank would not deal in Bitcoin as an asset. It has also previously blocked its customers from dealing in MicroStrategy shares, because of their relationship with crypto.

Binance has not been affected too much despite the recent events, with its daily trading volumes remaining fairly stable. The biggest worry stemming from the UK’s regulatory attitude towards crypto and Binance specifically is that it could pour over into other countries. The exchange would then be heavily affected because most of its customers are outside of the UK.