Yet another bank is banning Binance transfers

Yet another bank is banning Binance transfers

Nationwide, one of the UK’s largest banks, has announced a restriction on card payments for Binance, the world’s largest cryptocurrency exchange.

“Payments to Cryptocurrency Company Binance using Nationwide Cards are declined”said the bank.

“Even with your direct consent in person or over the phone, we cannot remove the restriction and allow you to make a payment to Binance.”

This surprising measure, which undoubtedly illegally infringes proprietary rights and engages in anti-competitive practices, is for the safety of users, the bank said in a statement.

“Our number one priority is and always will be to keep you and your money safe. That is why we have decided to limit payments.”

Binance is one of the safest cryptocurrency exchanges in the world, as far as we know, without experiencing any major hacks, while maintaining a $1 billion reserve fund to cover any potential hacks or other hardships.

It is also one of the few cryptocurrency exchanges to come under scrutiny, with massive withdrawals and negative news.

Of course there are always risks with intermediaries, but Nationwide Bank bailed out more than a decade ago, so they aren’t completely safe either.

In terms of reasonable risk, “security” is probably not the real reason this decision was made, without clarifying why Binance is specifically chosen for it.

UK banks hate Binance

In 2022, Santander stopped supporting cryptocurrency exchange Binance. In his justification, the new censorship would be a form of protection for customers.

Then TSB bank followed suit and robbed customers of buying cryptocurrencies binance and further creak.

Several other banks in the country have also taken steps to ban the purchase of cryptocurrencies, and unlike the government, UK banks have been a bit slow to adopt cryptocurrencies and have been notorious for their anti-crypto stance.

Barclays’ bank still flags transfers to Binance as “suspicious”, a minor hurdle that nevertheless falls short of this outright nationwide ban, albeit for an exchange.

HSBC, on the other hand, wants to develop cryptocurrency services, while the UK government has announced plans to regulate the sector with plans that look balanced.

It is clear from this national ruling that the British government must also regulate banks.

For example, France prohibits commercial banks from discriminating against cryptocurrencies, either by denying bank accounts or blocking payments.

No such measure was taken in the UK, despite its own Financial Conducts Authority, equivalent to the SEC, which accused banks of anti-competitive practices in 2017.

Until such action is taken, Nationwide customers may turn to another bank. There are very friendly people these days. Revolut is a clear example and while it is not yet a traditional bank, it is in Europe.

There is BitPanda from Germany, which is similar to Revolut, but initially started with just cryptocurrencies.

Both have a card that you can use as a regular card for payments, but the UK government really has to deal with this quasi-legislation made by the banks themselves.

Article translated with permission from TrustNodes.

Source: Live Coins