Binance, one of the world’s leading cryptocurrency exchanges, has been banned from operating in the UK.
Binance, based in the Cayman Islands, allows people to buy and sell a wide range of digital assets. It has caught the attention of regulators who have expressed growing concern about the ease with which cryptocurrencies can be used to facilitate crime and launder proceeds.
The UK’s Financial Conduct Authority (FCA) has also issued repeated warnings that crypto investors can lose all of their money.
But what exactly does the UK Binance ban mean for customers?
What did the regulator say?
The FCA has stated that Binance Markets Ltd, Binance’s only UK regulated entity, “shall not, without the prior written consent of the FCA, conduct any regulated activity … with immediate effect.”
“Due to the imposition of requirements by the FCA, Binance Markets Limited is currently not permitted to engage in regulated activities without the prior written consent of the FCA.”
The FCA said Binance appeared to offer UK customers a range of products and services through its website, Binance.com.
Binance had requested authorization from the FCA but withdrew its request last month.
In January, the FCA banned companies from selling cryptocurrency derivatives and exchange-traded notes to retail investors.
These products allow people to bet on the price of assets like bitcoin without actually buying them. Derivatives can multiply the potential returns and losses many times over.
What does this mean for UK customers?
Binance said the move would have no impact on people’s ability to trade through its Binance.com website.
Customers can still access the company’s services through the website which is not based in the UK and therefore falls outside the jurisdiction of the FCA.
Binance is to post a warning on its website stating that it does not have authorization from the regulator to operate in the UK.
Rabya Anwar, partner at Keystone Law, said the order sends a “clear signal” to the entire crypto market.
“Other cryptocurrency exchanges and related market participants need to keep a close watch, prepare carefully, and have no illusions – Binance is unlikely to be the only target.”
“In addition to being ordered to post a stern notice on its website and social media regarding its lack of permissions, Binance may also have to undertake intense procedural tasks within an extremely tight deadline – a few days. only.
“Binance will then need to confirm completion to the FCA. Other relevant cryptocurrency exchanges and vendors would be well advised to take note and undertake similar exercises immediately.”
What was the impact of the ban on prices?
While previous announcements by US and Chinese regulators have sparked major moves in crypto markets, the FCA’s latest change barely made a ripple.
The prices of major cryptocurrencies did not react to the news, with bitcoin continuing to trade above $ 34,000 on Monday.
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Source: www.independent.co.uk
This notice was published: 2021-06-28 17:50:18
