One of Europe’s biggest banking groups, Santander, recently posted on its official Twitter account that it will halt its customer payments to Binance, citing an increase in fraud and the need to keep their clients safe as the main reasons.
In its announcement, the institution also mentioned a recent Financial Court Authority (FCA) notice that warned about the company being not licensed to operate in the United Kingdom.
“In recent months we have seen a large increase in UK customers becoming the victims of cryptocurrency fraud. Keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA’s warning to consumers,” said Santander on its official statement.
The growing list of banks alarmed by Binance
Santander now joins the list of British banks that have taken precautionary measures with regard to dealing with cryptocurrency companies. It includes Monzo, TSB, Nat West, Metro Bank, HSBC, Lloyds and Barclays.
Along this line, Binance Chief Executive Officer Changpeng Zhao posted a letter attempting to address the matter at hand. The Binance top honcho failed to address specific cases. Instead, he said clearer regulatory guidelines were needed and that his company did not always do things the right way.
Some experts and industry players say that all of these are part of an elaborate and targeted scheme aimed at the world’s largest exchange in order to clamp down on the cryptocurrency sector.
Clients react negatively
Santander’s decision did not sit well with some of its customers, with one Twitter user implying that the institution is overstepping the mark in determining how clients must spend their own money.
“I am not a child. As a result, I will be looking to move my money elsewhere. You think your customers are gullible enough to believe it’s to “protect us,” one unhappy bank customer said.
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