Barclays ban Binance deposits

Mje2020

Hi all,

Along with all Barclays customers who have used Binance (cryptocurrency exchange) in the past, I received a message yesterday telling me I would no longer be able to make deposits to Binance. All deposits are banned. 

I am appauled by this action. It isn't a case of whether you think crypto is a 'scam' or not, this is my bank dictating where I can or can not spend money. Clients were told this was to 'protect' our funds. I am still allowed to use any other crypto exchange and any gambling site. 

I would be interested to hear views on the action taken by Barclays. As stressed, this isn't a 'crypto' discussion. This is a question of whether it is acceptable (legal even) for a bank to stop you making purchases of your choice.

Thanks. MJE

ColdIron

Don't be appalled. Barclays is not dictating where you can or can not spend money. They are informing you that you cannot use their services. If Tesco stopped selling apples would you accuse them of stopping you eating apples? They will have good commercial reasons for this action

pbartlett

Only my opinion but i agree with you, but with the proviso that you don't expect barclays to re-imburse you if binance go down or whatever.

The banks should not block perfectly legal payments

Alexland

Mje2020 said:

I would be interested to hear views on the action taken by Barclays.

I don't see why Barclays shouldn't be able to say there are certain transactions they do not want to facilitate. You have the choice to take your business elsewhere and they have the choice not to be involved. Seems fair and reasonable.

Frequentlyhere

Given the FCA's recent ruling, it's possible that Barclays took this position as a liability limiting measure to prevent their customers in future trying to make claims against them for lost money to fraud.

I know you won't welcome this view at all, but there are good reasons why this and various other measures are being taken against Binance, (not just by this bank and not just in this country). There are big question marks over this operation, and their refusal to do the necessary KYC/AML checks for regulation is a significant red flag.

Whilst one can accuse banks of hypocrisy or nannying, ultimately it's their ball, you can still have your cash back and put it elsewhere. 

Frankly, and this is more aimed at others than you perhaps, why anyone would want to put their funds in an operation that is being gradually surrounded/closed down all over the world is beyond me. I mean, there's risk and then there's risk!

Mje2020

I have closed my account. These comments seem to completely miss the point. What if more, or all, banks take such a line, and what if this stretches beyond crypto? It's well and good saying you can move bank until all banks take such a line. 

If Tesco stop selling apples, yes, I go elsewhere. If they tell me they are not allowing me to buyt them to protect me, I ask questions. 

If your bank stopped you from making transactions in a certain supermarket to protect you, I guess you would all be fine with that based on the responses? How about if your bank said that to protect you, you could no longer buy alcohol, soft drinks, take aways, etc. Still happy with that? Still reasonable and fair?

Mje2020

Ha, thanks for the incredibly helpful feedback. I joined this forum today thinking it could be useful to have a discussion about this. It is quite a development and an interesting topic to debate. Clearly not here though.

Ian, I am curious about why you feel the need to throw in the last sentence? Sounds a bit hostile and bully-like to me. I'm disappointed in my bank, concerned about the precedent, and you put that out there! Well, cheers. You've put a newbie off this forum. Enjoy your next 1000 comments on people's posts. 

jimjames

Mje2020 said:

Hi all,

Along with all Barclays customers who have used Binance (cryptocurrency exchange) in the past, I received a message yesterday telling me I would no longer be able to make deposits to Binance. All deposits are banned. 

I am appauled by this action. It isn't a case of whether you think crypto is a 'scam' or not, this is my bank dictating where I can or can not spend money. Clients were told this was to 'protect' our funds. I am still allowed to use any other crypto exchange and any gambling site. 

I would be interested to hear views on the action taken by Barclays. As stressed, this isn't a 'crypto' discussion. This is a question of whether it is acceptable (legal even) for a bank to stop you making purchases of your choice.

Thanks. MJE

Banks have restricted gambling sites for payments for some time, probably other sites too. Were you complaining then? A bank can make decisions that suit its business, if you don't like it then you are free to go elsewhere.

Mje2020 said:

Ha, thanks for the incredibly helpful feedback. I joined this forum today thinking it could be useful to have a discussion about this. It is quite a development and an interesting topic to debate. Clearly not here though.

So if the replies aren't to your liking then it's not a valid discussion? Don't you see how silly that looks?

ColdIron

Mje2020 said:

I would be interested to hear views on the action taken by Barclays.

You asked for views, you've got them

Alexland

You asked for views on a forum and you got them. One person even agreed with you. Did you expect us all to agree that Barclays should forced to support something they don't agree with and might give them future liability?

dunstonh

I am appauled by this action. It isn't a case of whether you think crypto is a 'scam' or not, this is my bank dictating where I can or can not spend money. 

10/10 for dramatic presentation and 0/10 for accuracy.

 This is a question of whether it is acceptable (legal even) for a bank to stop you making purchases of your choice.

The bank is not stopping you.  They are just saying they won't facilitate the transaction.  
Given the recent warnings about Binance by the FCA and the high level of consumer protection the FCA imposes on the banks nowadays, this is not surprising.  The current consumer protection levels could see the bank you used to send the money over become liable to refund it on failure.     So, it's probably perceived as not being a viable commercial risk to continue to allow it.

you can just see the consumer media articles now.  "why did my bank let me send money to something which the FCA has issued a warning about.  I want my money back. Its so unfair blah blah".

Ha, thanks for the incredibly helpful feedback. I joined this forum today thinking it could be useful to have a discussion about this. It is quite a development and an interesting topic to debate. Clearly not here though.

Clearly, you did not want a discussion then.  You just wanted a load of people to agree with you.  That is not a discussion.