Crypto exchange Binance says Barclay’s decision to block payments is based on ‘inaccurate understanding’

British bank Barclays has been blocking payments to crypto exchange Binance since last week. The financial institution later confirmed to its cardholders that it has suspended the use of Barclays debit and credit cards for payments to exchange until further notice.

“As you've made a payment to Binance this year, we wanted to let you know that we're stopping payments made by credit/debit card to them until further notice,” Barclays said in a notification sent to cardholders, according to Cointelegraph. “This is to help keep your money safe. For further info, please search FCA Binance online. We're sorry for any disruption this may cause you.”

The bank also confirmed its decision to block card payments to the crypto exchange to Coindesk. “With effect from today, Barclays intends to stop credit and debit card payments to Binance,” Barclays said in an email to the publication. “This action does not impact on the ability for customers to withdraw funds from Binance.”

The bank’s decision came shortly after the Financial Conduct Authority (FCA) issued a warning to Binance. The regulator ordered the platform to stop all regulated activities in the country.

“Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA,” the FCA said. “No other entity in the Binance Group holds any form of UK authorization, registration or license to conduct regulated activity in the UK.”

However, Binance expressed its disappointment over Barclay’s decision to block card payments. The crypto exchange said that the bank’s action is based on inaccurate understanding.

“We are disappointed that Barclays appears to have taken unilateral action based on what appears to be an inaccurate understanding of events,” a spokesperson for Binance said, adding that the warning does not apply to products and services offered on www.binance.com. “The FCA notice relates to [Binance Markets Limited], which is a company incorporated in the UK and regulated by FCA.”

“We would welcome a dialogue with Barclays to discuss any concerns that they have and we hope that the above information helps to provide clarity on the matter,” the representative added.

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