In recent announcements, Binance, the largest cryptocurrency exchange in the world, has officially been banned by the Financial Conduct Authority (FCA), which is the UK’s financial regulator.
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group),” stated the regulator group in a press release. “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 UK authorization, registration or license to conduct regulated activity in the UK,” the announcement continued. “The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com.”
“Binance’s existing crypto exchange is not UK-based so, despite the FCA ruling, there will be no impact on UK residents who use the website to purchase and sell cryptocurrencies,” explained the BBC, which went on to add that the website is an “online centralized exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts, and even lending.”
“Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA” stated a spokesperson for the FCA in an interview with CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”
As stated by Binance, the notice from the FCA would see no “direct impact” on any services provided by the website, Binance.com.
“The FCA U.K. notice has no direct impact on the services provided on Binance.com … Our relationship with our users has not changed,” stated a spokesperson for Binance in an interview with CNBC. “We take a collaborative approach in working with regulators and we take our compliance obligations very seriously.”
“We are actively keeping abreast of changing policies, rules, and laws in this new space” added the spokesperson.
This gambit by the United Kingdom is just a piece of a larger effort by many international legislators to try and push back against the standardization of cryptocurrency.
Back in May, we experienced a crash in the cryptocurrency market and saw Bitcoin and Ethereum posting “their largest one-day drop since March last year,” as reported by Reuters, “with losses in the market capitalization for the entire cryptocurrency sector approaching $1 trillion.” We saw this decline take place “after China banned financial and payment institutions from providing cryptocurrency services,” reported Yahoo! Finance. The BBC issued a report that the communist country also “warned investors against speculative crypto trading.”