Visa and Mastercard remain an open major gateway between Binance and the financial system, despite increasing regulatory scrutiny on crypto exchanges, involving some banks and smaller payment companies It is designed to cut off.
Barclays And Santander Two of the UK’s largest lenders have stopped sending money to Binance via payment cards for the past few weeks because of a consumer warning to Binance issued by the Financial Conduct Authority last month.
Several other payment partners have also withdrawn, making it difficult for customers to move money to and from exchanges built into the Cayman Islands. However, continuous access to the world’s two largest credit card systems (usually through an intermediary payment company) provides Binance with an easy way for customers to transfer traditional currencies to exchanges, and its vastness. Means that you can emphasize a resilient network with.
“We are aware of the recent FCA statement on Binance,” Visa told the Financial Times, “we are interacting with Binance to monitor development.” “We continue to monitor this situation, including how exchanges meet regulatory requirements,” Mastercard said.
Neither company has prevented consumers, including the United Kingdom, from using payment cards on the major Binance exchange, Binance.com.
Binance also offers customers Visa branded debit cards. This allows customers to use funds from cryptocurrency wallets in everyday retail stores by converting digital assets into common currencies.
According to the group’s website, Binance cards can be used in many European countries, including Germany, France, Italy and Spain. It is issued by Contis, a group that has partnered with Visa to provide payment services in the EU through so-called electronic money licenses from the central bank of Lithuania. Contis declined to comment on his relationship with Binance.
Binance claims that it “takes legal obligations very seriously.”
After several regulators around the world cracked down on the company, the connection between exchanges and traditional finance has come to the fore. UK financial regulators have said Binance is not allowed to operate crypto businesses in the country, but other jurisdictions have warned that the group is not regulated by financial oversight agencies. Thailand has filed a criminal complaint against Binance, which allegedly operates in Southeast Asian countries without a license.
Italian securities regulator Consov joins the choir Thursday“Binance Group companies are not allowed to offer investment services or activities in Italy, even through the website www.binance.com,” he said.
Binance has typically used traditional currency channels through payment partners such as Checkout.com and Clear Junction. These partners themselves connect directly or indirectly to major payment networks.
Some of those relationships began to fray as the group faced criticism That practice To prevent potential money laundering, funding terrorism and fraud on the platform.
Clear Junction, Binance’s key European payment partner, said Monday that it would “stop promoting payments.” The group provides Binance access to Sepa, a European payments network that enables euro payments between 30 countries, and Faster Payments, the UK equivalent that facilitates sterling payments between boulevard banks. I did.
ClearJunction’s decision to stop offering Binance payment services was triggered by FCA’s consumer warning, Dima Kats, CEO of the London-based group, told the Financial Times. Another UK-based payments company focused on the crypto industry, BCB Group, also ended its relationship with Binance earlier this year, according to people familiar with the matter. Binance declined to comment on this issue.
As of Thursday, customers were unable to withdraw or deposit euros or pounds sterling through Faster Payments or Sepa. “We are working as quickly as possible to make payment services available to our users,” Binance said.
“The company is growing very fast and not everything is exactly right,” Binance CEO Changpeng Zhao said in an open letter last week. However, he vowed to take steps to improve the situation, including doubling the number of compliance staff and introducing new technologies and controls by the end of the year.
The group has already “cleared multiple external money laundering prevention audits,” he said.
Adam Samson can be reached at [email protected] Or at Telegram @ adamsamsonFT.
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