• 16 July 2021
  • 3.6 mins

The crypto world and specifically the area of centralized exchanges (CEXs) has recently been shaken by an unusual set of events.

Barclays Bank has stopped its UK customers from transferring money to Binance following the recent announcement by the Financial Conduct Authority (FCA) that the digital asset exchange was not authorized to do crypto business within UK borders.

Barclays is just the latest on the chain of troubles plaguing Binance. 

The Spanish financial giant Santander announced that it would no longer allow its U.K customers to deposit funds into their Binance account. The bank said it had to block the transactions due to the Financial Conduct Authority (FCA) banning the cryptocurrency exchange. Crypto fans and users were taken off guard by Natwest bank’s decision to decrease its daily limit to cryptocurrency exchanges, while Lloyds doesn’t allow its customers to fund their crypto exchange accounts using its debit and credit cards. 

Santander and Barclays are two of the largest banks in the U.K with some $3.7 trillion in combined assets. The FCA’s move came at a time when financial watchdogs worldwide have become concerned about the cryptocurrency sector and its possible role in illicit activities such as money laundering and fraud.

The public isn’t pleased. NFTeddy, a popular crypto account on Twitter compared Barclay’s move to the restrictions that China places on its citizens, calling it China 2.0. Anger brews further from among citizens of the U.K. 

We believe that working together, not pure anger, no matter how righteous, is not the optimal way ahead. As the adage goes, if anything sounds too good to be true, then it probably isn’t. Although full of groundbreaking innovation, there are lots of players in the cryptocurrency space acting irresponsibly. The FCA warned about online adverts and on social media promising high returns on investments in crypto assets or crypto asset-related products or being contacted out of the blue and being pressed to invest quickly.

The action of these irresponsible entities tends to be harmful to the general public. Ironically, those opportunistic players are the ones who invite aggressive regulations through the door in the name of protecting consumers which in return may stiffen further innovation from taking place.

The solution lies somewhere in the middle, the sweet spot which Sekuritance currently occupies. 

We believe that we should allow not just any innovation, but responsible innovation, one which is allowed to flourish while the same bad and irresponsible players are taken into accountability. Sekuritance was set up with the intent to ease bringing such entities to justice and ease the dialogue between regulators and the people. Mainstream crypto adoption inevitably leads through governments, which is why this dialogue must be intensified and all sides heard. 

Sekuritance offers practical solutions to the problem of KYC, one of the core issues communicated by the FCA’s announcement. 

The Sekuritance RegTech suite can help by making sure all aspects of KYC are met either via Sekur.Transact, Sekur.Trace or Sekur.MFA, all parts of our RegTech product suite. Sekur.Transact helps in identifying who your customers are and checks whether they are eligible and of good standing to transact with your product. Sekur.Trace will appeal to government agencies, banks, financial institutions, and cyber-crime / financial-crime authorities around the world, to help establish whether a particular crypto transaction or crypto wallet was involved in any dodgy scams or darknet activity. Sekur.MFA lets merchants validate and process 3DS checks before taking payments.

The full Sekuritance RegTech suite caters to the needs of all private players and innovators in the cryptocurrency space, small merchants which make everyday use of crypto possible as well as government bodies and regulators mandated to protect consumers. Sekuritance can help exchanges, launchpads, and anyone else with making sure their players’ KYC is top-notch and no illicit activities, fraud, or money laundering is taking place.

About Sekuritance

The Sekuritance RegTech platform provides a single platform for every eGRC need, including end-to-end AML/CTF, CECL, FCPA, vendor management, beneficiary onboarding, investor check, card processing MFA checks, blockchain wallet checks, cyber-risk assessments, and other RegTech or Business Process Management requirements.

Stay tuned for more info and follow us on:

Twitter: http://twitter.com/sekuritance

Telegram: http://t.me/sekuritance

Website: https://sekuritance.com

Back to Blog