Barclays ban Binance deposits

Mje2020

What is inaccurate about saying my bank is dictating where I can spend my money when they block me from making a transaction to a certain company? They are stopping me spending the funds I hold with them at Binance.  If I had one bank account only, then this is in fact stopping me. 

Have you seen how many times the FCA have fined and investigated Barclays?

Yes, I'm annoyed by this. If you can't see the really reason why this is happening then you are deluded. Although, I do appreciate your point on commercial viability. And yes, they would likely get a lot of kickback, which could come regardless as they have allowed transaction until this point. 

Is there precedent for this happening to other companies? I've not heard of it happening before. 

Mje2020

IanManc said:

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.

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. 

The bank has done something it is allowed to do. If you don't like it then you find another bank as you are entitled to do.

It's not the end of the world and no one died.

No one is bullying anyone.

Grow up and stop pretending to be a victim. 

I did leave, but again, thanks for helpful feedback. The irony in your advice to grow up isn't lost. 

GeordieGeorge

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

I think that it’s fair enough. UK banks have been heavily fined for not being diligent enough when it comes to stopping money laundering, and cryptocurrency trading is a common way for people to disguise the source of their funds.

GeordieGeorge

Mje2020 said:

What is inaccurate about saying my bank is dictating where I can spend my money when they block me from making a transaction to a certain company? They are stopping me spending the funds I hold with them at Binance.before. 

No they are not.

If a taxi driver declined to take you to Tottenham you couldn’t claim that they were stopping you going there. It’s the same principle here.

Mje2020

Ian, the FCA investigate many many companies each year. Barclays happen to be one that is regularly investigated. Trading platforms, tech companies, banks, pay day loans are regularly investigated. I am genuinely curious (to have a discussion) around whether banks often block transactions to a company based on this? I've not heard about it happening before. 

I can use any other site and buy loads of questionable goods, which is deemed fine. But to protect my funds, Barclays stop Binance. I am clearly annoyed by this. The comments indicating why Barclays may do this are useful. 

lozzy1965

Mje2020 said:

Ian, the FCA investigate many many companies each year. Barclays happen to be one that is regularly investigated. Trading platforms, tech companies, banks, pay day loans are regularly investigated. I am genuinely curious (to have a discussion) around whether banks often block transactions to a company based on this? I've not heard about it happening before. 

I can use any other site and buy loads of questionable goods, which is deemed fine. But to protect my funds, Barclays stop Binance. I am clearly annoyed by this. The comments indicating why Barclays may do this are useful. 

Examples would be useful here?

You see that Barclays are protecting themselves with regard to potential future liability claims given recent FCA comments, but are still unhappy.

solidpro

Get a free bank account with Starling and move it there first before transferring to Binance.

If you're used to dabbling in Crypto then you'll be used to moving cash, coins or tokens between different wallets and different accounts to get where you want to be. 

It's a simple situation to circumnavigate and it's not a hill I'd die on.

steampowered

Mje2020 said:. 

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?

Banks have always restricted deposits to certain organisations. It's nothing new.

In fact banks are under a legal obligation to prevent transfers which could result in fraud, money laundering or to sanctioned countries or organisations.

To take an extreme example, see https://www.bbc.co.uk/news/business-23255853.

Mje2020

Hi Lozzy, 

You don't need to use much of your imagination here really. My money is safer with Binance than Ladbrokes, for example. I can take out 100x leverage on many crypto platforms if I wish, which I wouldn't consider safe either. I can use my card to buy anything else I want. Barclays stated the ban was to 'keep my money safe'. I can put it into RobinHood if I lived in the US - take a look at their IPO document to see how they treat PIs! I can buy any shares I like via Barclays Invest - this can be in a whole plethora of dubious or close to bankrupt firms. If the reason was to keep clients' money safe, they would block many more companies (Amigo Loans, for example!).   

I have never heard of a bank blocking payments to a specific company. Does anybody have examples of this happening before? I am surprised others are not concerned by this, regardless of what company it is. I see I have a different view here to most others. That's fine. Personally, I want to be able to use my card however I like, being entrusted to make the decision myself. If I lose my money, so be it. As mentioned, I instantly switched to another bank (who will likely take similar action in future). 

lozzy1965

Hi Mje,

I'm by no means an expert on any of this, but just picking up on your first example.  You might regard your money as safer in Binance than Ladbrokes, I guess people who profess to know what they are doing when gambling might disagree - and a lot on here would say there is no difference between the two companies reasons for existence .
Is it what you could then do with your money AFTER it has been moved to Ladbrokes rather than Binance?  I'm thinking about the well documented liking for crypto currency when money laundering.

The link above your post is an example of 'this happening before'.