FTC received over 700 complaints about Binance in 12 months while Santander banning payments to the exchange
Binance is under increasing pressure as another UK bank stops paying the exchange. Furthermore, The United States regulator, the Federal Trade Commission (FTC) has received 760 customer complaints against the cryptocurrency exchange since June 2020. Perhaps this is a really unlucky time for the Changpeng Zhao (CZ) exchange.
FTC received over 700 complaints about Binance in 12 months
The most notable complaint is about large-scale customers not being able to receive their funds from the exchange. Notably, the accounts were flagged for “suspicious activity” and withdrawals were not possible even after identity verification. Besides that, other complaints are mainly about customers being scammed while trying to contact the company’s customer care department. However, this is a common problem of trading platforms.
To curb scams, Binance is encouraging its customers to use chatbots on its website. Notably, they also lack email customer service. Interestingly, some of the complaints also come from individuals who have never interacted. However, claims in this line are likely to fall prey to scams.
The report comes as the focus continues to turn on Binance with regulators turn the heat on the exchange. Notably, they’re reportedly under investigation for money laundering by the DOJ and IRS.
Santander joins the list of U.K banks banning CZ’s exchange payments
In response to a user inquiry about receiving an email regarding Binance being canceled, and asking if they still move money from this exchange to Santander, one of Europe’s largest banking groups tweeted that they would be stopping payments of customers for Binance. It shows the increase in fraud and the need to keep their customers safe.
In recent months we have seen a large increase in UK customers becoming the victims of cryptocurrency fraud. Keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA’s warning to consumers. At pr… https://t.co/Glq8KQqbwn
— Santander UK Help (@santanderukhelp) July 8, 2021
Santander also mentioned a recent Financial Conduct Authority (FCA) notice that warned that the exchange is not licensed to operate in the U.K.
“In recent months we have seen a large increase in UK customers becoming the victims of cryptocurrency fraud. Keeping our customers safe is a top priority, so we have decided to prevent payments to Binance following the FCA’s warning to consumers,” the bank said.
As such, it is the latest bank to join a list of UK banks that have sounded the alarm about dealing with crypto companies recently. This includes Monzo, TSB, Nat West, Metro Bank, HSBC, Lloyds, and Barclays.
Banks are rejecting Binance for user protection reasons. But the truth, what they do is not the truth. Possibly their reason for blocking payments to the CZ’s exchange and other crypto exchanges is to protect themselves from the risk of not complying with the Financial Action Task Force (FATF) rules.
CZ did not directly address any specific cases, but he said clearer regulatory guidelines are needed. Furthermore, CZ commits that Binance is always willing to work with regulators.
It seems that Binance, as the world’s largest exchange, is being targeted as part of a broader crackdown on the crypto sector.
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