British banking giant Nationwide has announced that one of the world’s largest Bitcoin exchanges has imposed restrictions on card payments.
UK bank imposes restrictions on this Bitcoin exchange
The Nationwide Building Society is a British mutual financial institution with over 16 million members, the seventh largest cooperative financial institution in the world and the largest construction society. “Payments made to Binance using your Nationwide cards will be declined,” the bank announced during the day. “Even with your direct permission in person or over the phone, we cannot lift the restriction and allow you to pay Binance.”
Nationwide cites “security” concerns for this baffling measure, which allegedly interferes with property rights and leads to anti-competitive practices. According to the official statement, “Our number one priority is and always will be to keep you and your money safe. For this reason, we have decided to restrict card payments.”
Bank raises trust issues, but that’s not the case
Binance is one of the most secure cryptocurrency exchanges known and has not had any successful hacks so far. It also has a $1 billion SAFU reserve fund to cover potential hacks or other challenges. It is also one of the few crypto exchanges in the market to undergo severe audits and provides a Proof of Reserve (PoR) that demonstrates its holdings.
Still, there are always risks associated with cryptocurrency exchanges and companies like Binance. He was also bailed out by taxpayers over a decade ago at Nationwide, so his own establishment isn’t entirely secure either. As far as reasonable risk is concerned, “security” was probably not the real reason for this decision, it is still not clear why he made such a decision about Binance.
However, unlike other countries, British banks are slow in crypto adoption and are notorious for their anti-crypto stances. Another British bank, Barclays, still calls crypto transfers “suspicious”. That’s a minor hurdle that falls short of this full ban by Nationwide, albeit to a single exchange. On the other hand, while HSBC is looking to develop crypto services, the UK government has announced plans to regulate crypto, and these plans seem balanced overall. cryptocoin.com As we reported, the UK announced yesterday that it plans to introduce ‘strict’ crypto rules.
Nationwide’s Binance move was part of the UK’s crypto perspective
Nationwide’s restrictive decision on the world’s largest Bitcoin exchange suggests that the UK government should regulate banks as well. For example, France prohibits commercial banks from discriminating against cryptocurrency by denying bank accounts or blocking payments.
No such action was taken in the UK, despite its own Financial Conduct Authority, the equivalent of the SEC, which accused banks of engaging in anti-competitive practices in 2017. Nationwide customers may go to another bank until these measures are taken. There’s Revolut, for example, and BitPanda, Germany’s crypto exchange that’s pretty similar to itself but originally started with crypto only. Both have a card that you can use like a regular card for payments, but the UK government really needs to address this semi-law made by banks.
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