A death knell for Binance? The popular cryptocurrency exchange gets banned by UK regulator - Dispatch Weekly

Business

July 3, 2021 - Reading time: 2 minutes

Banning cryptocurrency exchange, Binance, adds to the global limitation of crypto trading. U.K’s Financial Conduct Authority (FCA) imposes a ban on the biggest cryptocurrency exchange.

Brits crypto trading companies are required to update their websites and apps. This text is to be placed prominently:

‘BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorization, registration or license to conduct a regulated activity in the U.K.).’

Binance established its marketplace for digital assets. It is not registered with the FCA due to not fulfillment of anti-money laundering conditions. 

Even if the firms are not registered, they are still allowed to trade with buyers in the U.K. The ban restricts only regulated services provided by Binance Markets Limited.

“The FCA U.K. notice has no direct impact on the services provided on Binance.com … Our relationship with our users has not changed,” a Binance spokesperson informed CNBC. 

He further added, “We are actively keeping abreast of changing policies, rules, and laws in this new space.”

Laith Khalaf, a financial analyst, points out that providing derivatives is a regulated activity. It is the main target of the FCA. Allowing mere access to cryptocurrencies is not a regulated activity. 

It is not only the FCA that restricted crypto trading. Japan warned about Binance conducting activities without seeking permission. China also has commanded to withhold crypto trading in several regions and banks. 

Khalaf said, “This isn’t a step change in regulation which is going to knock the crypto craze on the head, but it is part of a growing trend of regulatory intervention in crypto markets.”

DW Staff

David Lintott is the Editor-in-Chief, leading our team of talented freelance journalists. He specializes in covering culture, sport, and society. Originally from the decaying seaside town of Eastbourne, he attributes his insightful world-weariness to his roots in this unique setting.

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