A message from my bank saying they will not allow me to purchase from Binance

sapnu

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Quote from: Cryptoshops on July 05, 2021, 02:20:46 PM

I got a message from my UK bank saying they will no longer allow payments from debit/ credit cards to Binance. This is all to do with the UK FCA ban but I thought it was not going to affect us being able to use the Binance.com site, seems I was wrong Binance will loose a lot of UK revenue if they do not become FCA regulated like Coinbase has done Sad

It is quite unfortunate yet we need to accept the fact that there will be instances wherein national banks of government regulated banks will not allow the transaction of crypto. Crypto has a long way to go still before getting regulated in many countries, all we need to do is be patient and keep on believing that it will happen in no time. It is something new for the old ones and considering the fact that most of the people in the government are too used to the fiat system, they will more likely stick to it instead of opening up to a new system. We're getting close to it, we just need to keep on believing regardless.

Tina H

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Normally, in many national banks, cryptocurrency transactions are not allowed. They use various methods to detect whether your property has been traded in cryptocurrency. If discovered by them, it is very likely that your account will be frozen, requiring you to go to the counter. It is very complicated to deal with. The only solution now is to use a bank account that does not resist cryptocurrency to trade. This is effective. If you want to know which banks you can search online!

Kiley33

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I see that other places are also banning Binance transactions. If this is the case, do not make any transactions. Put your money in your wallet. The ban should not last forever. If it is convenient, you can switch the country's bank card for binding.

jostorres

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Quote from: Ultegra134 on July 11, 2021, 04:09:06 AM

From what I've read from previous posters, banks have opposed a ban to Binance's exchange. One way you could solve this would be to use a middleman service. I've been using Revolut for quite a few years now and was my main method of depositing money on exchanges. Use your debit card to load money to your Revolut account and then transfer the money from your Revolut to Binance.

This method requires no fees whatsoever and is probably your safest bet.

Banks are not opposed to it, there is a ban by the UK government that requires a lot stricter regulations which Binance is working on and UK will have Binance all over again. The problem here is not that banks are against bitcoin or binance or anything crypto related, they are just following the rules their governments set out and that's about it, they do not have anything extra about it at all.

I understand that it may not be ideal, I understand that it is definitely not something simple and I understand that people hate it when their exchanges are getting faced with a lot worse regulations because we all know that it's done to slow us down and make it worse for us, but at least it is not a complete ban like China did and it will be back on the menu soon enough, hell there are some UK based exchanges that still works if you want to, just not all of them.

Ultegra134

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Quote from: Sithara007 on July 11, 2021, 11:18:08 PM

Quote from: Ultegra134 on July 11, 2021, 05:53:32 PM

It's also a way to avoid having your money/crypto taxed, when withdrawing or depositing money. I'd prefer not having crypto related transactions showing up in my bank statement. With the previous method, I have a physical and a virtual debit card, which has zero fees for depositing money via my national debit card.

Generally, it's best to avoid showing any crypto related activity, for various reasons, the main one being taxation.

I am not sure whether the usage of VCCs may help you with tax evasion. Unless you mix your coins, it is easy for the authorities to track your transactions using cryptocurrencies. And at some point, you need to cash out. If you are using an exchange such as Binance, then only a few options are available for withdrawal and normally they don't allow anonymous cash withdrawals. You can always use the same method (i.e converting your coins to VCC at the time of cashing out), but I don't know how practical is it. Because VCCs can't be used in all the domains where cash is accepted. It may be OK for small amounts though.

It probably isn't, however, it's still a way to not directly show that I'm involved into crypto activity. I'd prefer not having such transactions on the bank account I'm receiving my paycheck. Revolut and any other similar services, are also banking services that have your full details, your moves can still be tracked through them, it's just that it's unlikely you'll be directly audited.

Sithara007

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Quote from: Ultegra134 on July 11, 2021, 05:53:32 PM

It's also a way to avoid having your money/crypto taxed, when withdrawing or depositing money. I'd prefer not having crypto related transactions showing up in my bank statement. With the previous method, I have a physical and a virtual debit card, which has zero fees for depositing money via my national debit card.

Generally, it's best to avoid showing any crypto related activity, for various reasons, the main one being taxation.

I am not sure whether the usage of VCCs may help you with tax evasion. Unless you mix your coins, it is easy for the authorities to track your transactions using cryptocurrencies. And at some point, you need to cash out. If you are using an exchange such as Binance, then only a few options are available for withdrawal and normally they don't allow anonymous cash withdrawals. You can always use the same method (i.e converting your coins to VCC at the time of cashing out), but I don't know how practical is it. Because VCCs can't be used in all the domains where cash is accepted. It may be OK for small amounts though.

Ultegra134

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Quote from: Vishnu.Reang on July 11, 2021, 08:01:10 AM

Quote from: Ultegra134 on July 11, 2021, 04:09:06 AM

From what I've read from previous posters, banks have opposed a ban to Binance's exchange. One way you could solve this would be to use a middleman service. I've been using Revolut for quite a few years now and was my main method of depositing money on exchanges. Use your debit card to load money to your Revolut account and then transfer the money from your Revolut to Binance.

This method requires no fees whatsoever and is probably your safest bet.

Perfectly said. Previously when I was using centralized exchanges, I have used VCCs from various providers to fund my fiat exchange wallets. I reside in India, and here linking your bank account to the cryptocurrency exchange is always risky due to the lack of legality of Bitcoin. The banks can use this excuse to either freeze your funds or shut down your bank account. So I have always went for the indirect route (i.e deposits using pre-paid virtual credit cards), although it is more expensive and time taking.

It's also a way to avoid having your money/crypto taxed, when withdrawing or depositing money. I'd prefer not having crypto related transactions showing up in my bank statement. With the previous method, I have a physical and a virtual debit card, which has zero fees for depositing money via my national debit card.

Generally, it's best to avoid showing any crypto related activity, for various reasons, the main one being taxation.

jaysabi

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Quote from: Darker45 on July 09, 2021, 11:09:26 PM

Quote from: jaysabi on July 09, 2021, 04:10:47 PM

This is not correct. No Binance entity is permitted to engage in any activities regulated by the FCA. It doesn't matter where a company is based, you cannot operate in the UK in regulated activities without a regulatory license. Neither binance.com nor any other Binance entity can engage in derivatives, market-making or other regulated activities. Further, the ban has caused several large banks to suspend payments to binance.com for regular crypto purchases. And even further, the FCA has a deadline of March 31, 2022 by which crypto asset businesses must register in order to continue trading in the UK.

I actually have a different understanding of this. Binance is not allowed to engage in any regulated activities within the UK. It doesn't mean it cannot offer products and services from an entity operating elsewhere outside the UK's jurisdiction. As a matter of fact, trading cryptocurrency is not directly regulated in the country, although derivatives are allowed only with FCA authorization. However, problems arise with local third parties which are FCA-regulated such as banks, payment processors, payment systems, and so on, the ones which are bridging the Brits and the platform based outside the ambit of FCA regulations.

"British citizens will still be able to access Binance's services in other jurisdictions."^[1]

"The FCA UK notice has no direct impact on the services provided on Binance.com."^[2]

"...Binance is technically allowed to continue offering crypto trading to Brits..."^[3]

[1] https://www.reuters.com/world/uk/financial-watchdog-orders-crypto-exchange-binance-stop-regulated-activities-uk-2021-06-27/
[2] https://edition.cnn.com/2021/06/27/business/binance-uk-ban/index.html
[3] https://www.cnbc.com/2021/07/08/binance-uk-crackdown-boosts-rival-cryptocurrency-exchanges.html

We're largely saying the same thing. I think I just needed to be explicit in saying that binance.com purchases and sales aren't regulated by the FCA, since I just kept referring only to regulated activities. However, no entity is allowed to offer regulated services in the UK without FCA approval, whether or not they're based there or not. Being based elsewhere doesn't give you an out to following the laws where you operate, so that's not why purchases and sales are allowed on binance.com. For what it's worth, I do expect that to change in the future as well.

Vishnu.Reang

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Quote from: Ultegra134 on July 11, 2021, 04:09:06 AM

From what I've read from previous posters, banks have opposed a ban to Binance's exchange. One way you could solve this would be to use a middleman service. I've been using Revolut for quite a few years now and was my main method of depositing money on exchanges. Use your debit card to load money to your Revolut account and then transfer the money from your Revolut to Binance.

This method requires no fees whatsoever and is probably your safest bet.

Perfectly said. Previously when I was using centralized exchanges, I have used VCCs from various providers to fund my fiat exchange wallets. I reside in India, and here linking your bank account to the cryptocurrency exchange is always risky due to the lack of legality of Bitcoin. The banks can use this excuse to either freeze your funds or shut down your bank account. So I have always went for the indirect route (i.e deposits using pre-paid virtual credit cards), although it is more expensive and time taking.

Kong Hey Pakboy

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That's a pretty sad thing but I guess that this isn't going to be a permanent thing right? From the message sent, it's like they don't really plan to permanently ban Binance, it's just that there's a lot of problems with them that right now staying away from the heat is the best thing to do.

Ultegra134

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From what I've read from previous posters, banks have opposed a ban to Binance's exchange. One way you could solve this would be to use a middleman service. I've been using Revolut for quite a few years now and was my main method of depositing money on exchanges. Use your debit card to load money to your Revolut account and then transfer the money from your Revolut to Binance.

This method requires no fees whatsoever and is probably your safest bet.

Cryptoshops

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Quote from: Darker45 on July 09, 2021, 11:09:26 PM

Quote from: jaysabi on July 09, 2021, 04:10:47 PM

This is not correct. No Binance entity is permitted to engage in any activities regulated by the FCA. It doesn't matter where a company is based, you cannot operate in the UK in regulated activities without a regulatory license. Neither binance.com nor any other Binance entity can engage in derivatives, market-making or other regulated activities. Further, the ban has caused several large banks to suspend payments to binance.com for regular crypto purchases. And even further, the FCA has a deadline of March 31, 2022 by which crypto asset businesses must register in order to continue trading in the UK.

I actually have a different understanding of this. Binance is not allowed to engage in any regulated activities within the UK. It doesn't mean it cannot offer products and services from an entity operating elsewhere outside the UK's jurisdiction. As a matter of fact, trading cryptocurrency is not directly regulated in the country, although derivatives are allowed only with FCA authorization. However, problems arise with local third parties which are FCA-regulated such as banks, payment processors, payment systems, and so on, the ones which are bridging the Brits and the platform based outside the ambit of FCA regulations.

"British citizens will still be able to access Binance's services in other jurisdictions."^[1]

"The FCA UK notice has no direct impact on the services provided on Binance.com."^[2]

"...Binance is technically allowed to continue offering crypto trading to Brits..."^[3]

[1] https://www.reuters.com/world/uk/financial-watchdog-orders-crypto-exchange-binance-stop-regulated-activities-uk-2021-06-27/
[2] https://edition.cnn.com/2021/06/27/business/binance-uk-ban/index.html
[3] https://www.cnbc.com/2021/07/08/binance-uk-crackdown-boosts-rival-cryptocurrency-exchanges.html

Yes this is correct and as Binance.com and the FCA have said they cannot stop people in the UK form buying or selling crypto on that site, so the bank is using the FCA statement which refers to the UK Binance markets limited site which is located in London, not the Binance.com website.

Darker45

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Quote from: jaysabi on July 09, 2021, 04:10:47 PM

This is not correct. No Binance entity is permitted to engage in any activities regulated by the FCA. It doesn't matter where a company is based, you cannot operate in the UK in regulated activities without a regulatory license. Neither binance.com nor any other Binance entity can engage in derivatives, market-making or other regulated activities. Further, the ban has caused several large banks to suspend payments to binance.com for regular crypto purchases. And even further, the FCA has a deadline of March 31, 2022 by which crypto asset businesses must register in order to continue trading in the UK.

I actually have a different understanding of this. Binance is not allowed to engage in any regulated activities within the UK. It doesn't mean it cannot offer products and services from an entity operating elsewhere outside the UK's jurisdiction. As a matter of fact, trading cryptocurrency is not directly regulated in the country, although derivatives are allowed only with FCA authorization. However, problems arise with local third parties which are FCA-regulated such as banks, payment processors, payment systems, and so on, the ones which are bridging the Brits and the platform based outside the ambit of FCA regulations.

"British citizens will still be able to access Binance's services in other jurisdictions."^[1]

"The FCA UK notice has no direct impact on the services provided on Binance.com."^[2]

"...Binance is technically allowed to continue offering crypto trading to Brits..."^[3]

[1] https://www.reuters.com/world/uk/financial-watchdog-orders-crypto-exchange-binance-stop-regulated-activities-uk-2021-06-27/
[2] https://edition.cnn.com/2021/06/27/business/binance-uk-ban/index.html
[3] https://www.cnbc.com/2021/07/08/binance-uk-crackdown-boosts-rival-cryptocurrency-exchanges.html

jaysabi

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Quote from: Cryptoshops on July 05, 2021, 05:41:37 PM

Quote from: jaysabi on July 05, 2021, 05:34:06 PM

Quote from: cheezcarls on July 05, 2021, 03:50:28 PM

Quote from: Cryptoshops on July 05, 2021, 02:20:46 PM

I got a message from my UK bank saying they will no longer allow payments from debit/ credit cards to Binance. This is all to do with the UK FCA ban but I thought it was not going to affect us being able to use the Binance.com site, seems I was wrong Binance will loose a lot of UK revenue if they do not become FCA regulated like Coinbase has done Sad

UK has been cracking down on cryptocurrencies since the past few months. As a result, most of the banks are not allowing crypto-related transactions whether buying, selling or converting to fiat. However, I do believe that Binance could negotiate with the regulators later on instead of getting banned for good.

The good thing about your topic is that the bank was informing you about it instead of an automatic closure of your bank account.

I think all Binance would need to do is become FCA compliant, there is no negotiation involved. You either abide by the financial laws in the jurisdictions you operate in, or you get banned. There's really no reason not to comply.

Binance.com does not fall under UK FCA regulations because they are not based here in the UK They are based in the Caymen Islands. The FCA have already stated that they can not stop people in the UK from trading on the site. They were talking about Binance company called Binance Markets Limited which is based here in the UK. "The FCA said Binance’s UK subsidiary – Binance Markets Limited – is not currently permitted to “undertake any regulated activities without the prior written consent of the FCA”.

So the FCA’s latest move isn’t entirely significant in this context. It is, in effect, merely enforcing an existing ban. But while Binance Markets Limited is banned from offering regulated services in Britain, non-registered firms can still engage with UK consumers to provide unregulated services – such as buying and selling cryptocurrencies. In order words, Binance can still offer UK-based investors crypto trading via its website."

Now the banks are saying we can not use Binance.com because of the FCA which is wrong.

This is not correct. No Binance entity is permitted to engage in any activities regulated by the FCA. It doesn't matter where a company is based, you cannot operate in the UK in regulated activities without a regulatory license. Neither binance.com nor any other Binance entity can engage in derivatives, market-making or other regulated activities. Further, the ban has caused several large banks to suspend payments to binance.com for regular crypto purchases. And even further, the FCA has a deadline of March 31, 2022 by which crypto asset businesses must register in order to continue trading in the UK.

thesmallgod

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Your country is well known to have a solid policy that protect individuals at large. If Binance will not fully comply with the FCA regulation, I do not thing citizen like you will be able to buy directly from binance with your card. It means you are going to buy elsewhere and transfer to binance if you want to trade. I already read on the internet that they are currenly enhancing their compliance with FCA regulation, meaning they already aware how important you and the rest of UK citizens https://www.complianceweek.com/grc-appointments/binance-enhancing-compliance-after-recent-uk-ban/30558.article

Cryptoshops

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Quote from: bakasabo on July 08, 2021, 08:04:08 AM

Does this ban exposed to all UK banks so far only Barclays refuses do work with Binance? With such prohibition, is it hard for UK citizen to open an account in an abroad bank? Just change the bank. Does the scheme "withdraw fiat - buy crypto IRL" popular in UK ?

Btw, what about PayPal in UK? It is possible to buy crypto through PayPal with UK ip? Bank card is linked to PayPal. You just pay to PayPal and bank dont monitor what you buy later. Will it work ?

I used to transfer money from Coinbase into paypal. I had the paypal account for years without any problems then about 3 months after using it to transfer money from Coinbase. Paypal restricted my account saying I needed to upload ID which and proof of my address which I did. It just says its pending review all the time, so I ended up phoning them and they said it will be sorted out. A year later its still the same and I have given up with Paypal.

Cryptoshops

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Quote from: The Sceptical Chymist on July 06, 2021, 08:03:15 PM

OP, I'm curious as to whether your bank is a big name one or a smaller, local bank. The reason I ask is because once I had a bank manager ask me in person about a bunch of transactions in my checking account (which was back when Circle used to buy/sell bitcoin). I told her that they were bitcoin purchases--and they were all for very small amounts--and that was pretty much the end of it. They might have been concerned, but they definitely didn't prohibit me from having my checking account linked to Circle.

This Binance thing in the UK and elsewhere really sucks. And on the radio today I heard some politician in the US talking about banning bitcoin because of all the ransomware attacks that have been going on lately. It seems like there's a (maybe) coordinated attack against crypto by a lot of powerful people and/or institutions. I'm hoping for the best, but banks have a lot of power and so do politicians.

Hopefully you can find another exchange to do business with, OP. I wish you luck.

Quote from: Bitcoin_Arena on July 06, 2021, 06:59:44 PM

It's so funny how Barclays Bank UK all of a sudden care about how adults spend their money on crypto yet they allow the same adults to use the money to buy guns, drugs and even gamble it off irresponsibly. Double standards!

It's not funny at all, IMO. Unless the crypto community stands up to these assholes, we're all going to be in some serious shit if we want to continue being bitcoiners (or altcoiners). All it would take is a law banning crypto and we'd all be instant criminals.

Yes its one of the big international banks so not just in the UK As far as I can tell its the only bank in the UK to stop payments to Binance.com

Cryptoshops

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Quote from: Bitcoin_Arena on July 06, 2021, 06:59:44 PM

I saw a number of such messages posted by different users on twitter

It's so funny how Barclays Bank UK all of a sudden care about how adults spend their money on crypto yet they allow the same adults to use the money to buy guns, drugs and even gamble it off irresponsibly. Double standards!

Yep thats the same message as what i got

goldade

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Quote from: Cryptoshops on July 05, 2021, 02:20:46 PM

I got a message from my UK bank saying they will no longer allow payments from debit/ credit cards to Binance. This is all to do with the UK FCA ban but I thought it was not going to affect us being able to use the Binance.com site, seems I was wrong Binance will loose a lot of UK revenue if they do not become FCA regulated like Coinbase has done Sad

Although the best thing would be that Binance becomes FCA regulated just like Coinbase so that their users can be allowed payments from debit and credit cards. There are, however, several other options that these users can employ.
One of which would be to, instead of Binance, use other exchanges that are FCA regulated and allow transactions with debit and credit cards
Another alternative would be to still use Binance but instead of cards employ the use of P2P.
Those are, I believe, the best alternatives

RokokGudangGaram

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Quote from: BITCOIN4X on July 09, 2021, 01:10:45 PM

We really need to check why banks don't allow direct transactions to binance. AFAIK, the Indonesian government has also included the binance site in the exchange list which is no longer accessible to trader (blocking access site) due to not having permission and complying with regulation. But we can still use the app and make a deposit there via another local exchange that already has a permit.

Inquiring directly with the bank, regarding the discontinued approval for having transactions with Binance, would be the greatest way to find out why such happened. And just like what others have suggested in this thread, it would also a good step to ask other local banks in your areas if they allow clients to have direct transactions with Binance. Then maybe one could just opt to that bank that allows transactions with Binance.

Topic: A message from my bank saying they will not allow me to purchase from Binance (Read 530 times)