- Nationwide Bank announced a restriction on card payments to Binance exchange.
- “Our number one priority is, and always will be, keeping you and your money safe”: bank
- Binance deemed not safe despite SAFU reserves but Nationwide bank no better.
The United Kingdom’s giant in the banking sector, Nationwide, announced a restriction on card payments to Binance..
The bank stated:
Payments to the cryptocurrency firm Binance using your Nationwide cards will be declined.
Furthermore, it stated, “Even with your direct consent in person or by telephone, we can’t remove the restriction and allow you to make a payment to Binance.”
Although these stringent measures arguably infringe on property rights and engage in anti-competitive practices, the bank stated that it was for the safety of the customer.
Furthermore, while instilling their views on the stern stance that aligns with the organization’s ethos, the bank stated:
Our number one priority is, and always will be, keeping you and your money safe. This is why we have taken the decision to restrict card payments.
Nonetheless, the reason for singling out Binance is not clear, given the fact that the exchange maintains a Secure Asset Fund for Users (SAFU) reserve fund of $1 billion to cover potential hacks or other difficulties. Moreover, it is recognized as the safest exchange.
Additionally, Binance is also one of the few crypto exchanges that have gone through significant scrutiny in this space, and it provides Proof of Reserves of its assets.
However, as per the reports, there is naturally a risk factor involved with intermediaries and more so with Nationwide, as it was bailed out by the taxpayer over a decade ago.
Moreover, the report says: Where reasonable risk is concerned, “safety” is probably not quite the real reason why this decision was taken, with it unclear why it singles out Binance. Furthermore, the report states that British banks are hostile to crypto fronts, unlike their government.