Britain bans Binance's UK ops in latest cryptocurrency crackdown

[Cryptoshops]

I hope they sort this out

June 27 (Reuters) - Britain's financial regulator has said Binance, one of the world's largest cryptocurrency exchanges, cannot conduct any regulated activity and issued a warning to consumers about the platform, which is coming under growing scrutiny globally.

In a notice dated June 25, the Financial Conduct Authority (FCA) said Binance Markets Ltd, Binance's only regulated UK entity, "must not, without the prior written consent of the FCA, carry out any regulated activities... with immediate effect".

It also issued a warning to consumers about Binance Markets and the wider Binance group.

Binance said in a statement that Binance Markets, which it acquired in 2020, was not yet using its regulatory permissions, and that the FCA's move would not impact services offered on its Binance.com website.

"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," a spokesperson said.

Binance announced in June last year that it had bought an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros.

AUTHORISATION

While trading of cryptocurrencies is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives does require authorisation.

The FCA has told Binance that by June 30 it must display a notice stating "BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK" on its website and social media channels.

It must also secure and preserve all records relating to UK consumers and inform the FCA this has been done by July 2.

The regulator did not explain why it had taken these measures.

https://www.reuters.com/world/uk/financial-watchdog-orders-crypto-exchange-binance-stop-regulated-activities-uk-2021-06-27/

[Renampun]

actually, this is UK's move to fight cryptocurrencies...

Binance is the number 1 exchange in the world and almost all trading activities take place there. their reason for banning binance is absolutely ridiculous. why only binance, why not other exchanges too!

[Bttzed03]

~their reason for banning binance is absolutely ridiculous.

How so?

why only binance, why not other exchanges too!

That's because the other exchanges legally operating in the UK complied with the rules and regulations set by FCA. Binance Markets Ltd (not binance.com) failed to do that.

[The Sceptical Chymist]

Binance is the number 1 exchange in the world and almost all trading activities take place there. their reason for banning binance is absolutely ridiculous. why only binance, why not other exchanges too!

There's another thread about this, and in it I wrote that UK's move looks like political posturing to me--kind of like they want to look "tough on crime" as the politicians say in the US.  But from what I understand, Binance is still going to be available to UK residents because they're not a UK-based exchange.

As to why the UK is targeting Binance exclusively, it's probably for the reason you yourself wrote: They're the #1 exchange, and if a government has to go after someone (or something) they think is the bad guy, they go after the biggest and baddest--not that I think Binance is bad at all, but hopefully you get my point.

I'm keeping my fingers crossed that this doesn't become a global trend, but it's not looking so hot.  At least the US has Coinbase, and the government seems content to let them run under their regulations.  As long as Biden doesn't get crypto in his crosshairs, the US should be fine (at least as far as bitcoin is concerned).