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HSBC just announced a new ban on Binance

HSBC UK blocked credit card payments to Binance, the largest digital currency exchange platform globally
HSBC

HSBC UK blocked credit card payments to Binance, the largest digital currency exchange platform globally.

Several customers of HSBC, the British financial institution, have reported that they are not being allowed to purchase crypto on the online platform. The latest crackdown began on Monday, as shared by many clients on Twitter. 

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“We won’t comment on individual securities or cryptocurrency exchanges. We place particular emphasis on high anti-money-laundering (AML) and know-your-customer (KYC) standards, and are closely following developments, client demand, and changing regulation in these markets.”

HSBC, the sixth-largest bank in the world, continues its attack on digital currencies. The message received by the customers justified the measure was taken due to security concerns and for their own protection.

“We take our duty as a responsible lender seriously and want to do everything we can to protect you. We’ll continue to monitor the situation and let you know if anything changes.”

Noel Quinn, the chief executive of HSBC, gave an interview for Reuters in May. He said that virtual currencies lack stability and transparency.

Due to these issues, it’s not in the bank’s plans to start a digital currency trading desk.

“Given the volatility, we are not into Bitcoin as an asset class if our clients want to be there then of course they are, but we are not promoting it as an asset class within our wealth management business.”

Noel Quinn

According to Quinn, a reason that makes cryptocurrencies very hard to work with is the lack of information on the people who own them. He also added that Bitcoin’s volatility makes it rather complicated to be valued to the clients’ balance sheets.

The only types of digital currencies that the CEO of HSBC sees as a suitable asset are CBDCs. He believes that Central Bank Digital Currencies can help in the evolution of the financial system.

Binance has been experiencing a real crackdown from the Financial Conduct Authority (FCA) in the United Kingdom. The exchange also withdrew its application and did not register with the regulator because it couldn’t meet anti-money laundering requirements.

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