The aftershocks continue to reverberate as affiliated firms assess the action by the Financial Conduct Authority (FCA) to ban Binance’s activity in the UK.
Late last month, the UK securities regulatory effectively shut down Binance’s activity in the country. The statement by the FCA was followed by multiple banks publicly announcing they will no longer allow customers to transfer funds to Binance.
This week, Clear Junction, a UK based payment firm, said 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. 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.”
Binance is the largest crypto exchange in the world with a growing portfolio of services and features supporting the crypto industry. But recent moves by national regulators, seeking to stifle illicit activity in the crypto world has increased scrutiny on Binance. In response, Binance has boosted its AML/CFT compliance but it is not yet clear if these actions will be sufficient in the long wrong. Meanwhile, trading platforms that have focused on compliance have benefited from Binance’s exit from certain markets.
You may expect more UK financial services firms to announce a cessation of activity with Binance.