HSBC, the UK’s largest bank, banned its customers from depositing money at the exchange after the UK Financial Strategy Authority (FCA) announced that Bainance was not licensed to operate in the country.
to the Report CoinDesk, HSBC, the world’s sixth-largest bank, said on Tuesday that it would block its British customers from using the bank’s credit cards to pay Bainance.
The decision came after the British Financial Strategy Authority announced in June that Bainance had no right to engage in any regulated activity in the country.
Recent tweets show that HSBC has contacted its customers and advised them to stop paying until further notice.
A spokesman for HSBC said:
We have contacted HSBC UK customers and informed them of any changes that may occur in and affect the digital currency space.
We do not comment on individual investments in selected securities or digital currency exchanges. We place special emphasis on Anti-Money Laundering and Customer Authentication (KYC) standards, and we closely follow developments, customer demand, and regulatory changes in these markets.
In July, the British bank Barclays and the Spanish bank Santander also blocked payments to Bainance for British customers after several other British banks blacklisted the exchange.
A Bainance spokesman said in response to the HSBC action:
We regret that HSBC has made such a decision and welcome to talk to them about their concerns.
A Bainance spokesman added:
We take our legal obligations seriously and have a responsibility to work with legislators to implement policies that protect consumers, encourage innovation, and move our industry forward.