U.K Banned binance exchange.

[BayAngelo]

Recently, the financial watchdog banned binance exchange, the number one cryptocurrency exchange from business activities in united kingdom. this comes in effect after the congratulated binance for their assistance in exposing a huge drug business that uses crypto for their transaction. i thought the financial watchdog was transparent after expressing their successful collaboration with finance to fish out the business BUT baning binance shows they already has plan of doing so.
terrible how government financial institution functions.

[examplens]

Recently, the financial watchdog banned binance exchange, the number one cryptocurrency exchange from business activities in united kingdom. this comes in effect after the congratulated binance for their assistance in exposing a huge drug business that uses crypto for their transaction. i thought the financial watchdog was transparent after expressing their successful collaboration with finance to fish out the business BUT baning binance shows they already has plan of doing so.
terrible how government financial institution functions.

is this your projection or is there an official statement somewhere from someone authoritative?
Why only Binance, what about other crypto exchanges/services? for everything you say, you can apply to other crypto-related services, so why only Binance.
Still, I would like to see the source of this information.

[Darker45]

To be clear, lest it be misunderstood, what is banned is Binance's undertaking of any regulated activity within the UK. Meaning to say, what is not allowed is operation of any kind from any Binance entity within the UK without the necessary approval from the FCA. Which further means that since Binance.com is not an FCA-regulated entity, the leading platform for cryptocurrency exchange would still continue to offer its products and services to the UK market, with UK citizens completely free to make the most out of it.

Source:

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

[bbc.reporter]

@Darker45. All of the articles that I have read on the matter appear to be very vague and unclear. The articles said banned from undertaking of any regulated activity. Does that not imply trading with or without leverage?

Binance is also being investigated in Japan and Germany. They left Ontario, Canada. US SEC also has mentioned that it will file a lawsuit on BNB token issuance. I know there is an exchange with an aggressive CEO who might take much of its customers hehe.

[leea-1334]

Ok guys so I am trying to find the answer and cannot find it. I am not a UK citizen BUT I have used Binance before to sell to EURO during pre Brexit and I have tried to verify before (it did not work) with a UK address.

I know most people say it does not change anything and Binance itself says the same but legally,,, should I be still using Binance or should I get worried?

[Darker45]

@Darker45. All of the articles that I have read on the matter appear to be very vague and unclear. The articles said banned from undertaking of any regulated activity. Does that not imply trading with or without leverage?

That indeed implies all kinds of trading and all other activities which are regulated. The catch there is regulated. Activities happening on platforms which are not under regulation from the Financial Conduct Authority (FCA) could go on as usual. The regulatory body couldn't impose anything on them as they are not under its jurisdiction. Meaning to say, Binance.com which is operating outside the UK is beyond its regulatory powers. Therefore, what is actually under the scope of the ban are activities of Binance Markets Ltd which is what is only under FCA regulation.

[stompix]

That indeed implies all kinds of trading and all other activities which are regulated. The catch there is regulated. Activities happening on platforms which are not under regulation from the Financial Conduct Authority (FCA) could go on as usual. The regulatory body couldn't impose anything on them as they are not under its jurisdiction. Meaning to say, Binance.com which is operating outside the UK is beyond its regulatory powers.

Remember bitmex? 

As long as Binance will allow UK users to use the platform it will go against the FCA's ruling,
https://register.fca.org.uk/s/firm?id=001b000000nojfNAAQ#what-can-this-firm-do-restrictions
The moment the FCA says that Binance is still allowing UK-based citizens it will turn ugly and CZ knows, that they withdrew their application on May 21st, they knew that can't obbey the rules so they will try and do another stunt. How many times it has been already?

Why only Binance, what about other crypto exchanges/services?

Because they are the only ones fleeing country after country like a bumblebee and not holding a single valid license anywhere?

[leea-1334]

Remember bitmex? 

As long as Binance will allow UK users to use the platform it will go against the FCA's ruling,
https://register.fca.org.uk/s/firm?id=001b000000nojfNAAQ#what-can-this-firm-do-restrictions
The moment the FCA says that Binance is still allowing UK-based citizens it will turn ugly and CZ knows, that they withdrew their application on May 21st, they knew that can't obbey the rules so they will try and do another stunt. How many times it has been already?

Yup! But that is about the US and IRS and we all know how crazy they can go after Americans just to get their taxes owed,,, I always wondered if there was other countries as crazy as to go like that but now that UK Brexited, it does appear that they will do their best to chase income down. Maybe for now they are relaxed but sooner or later they will start cracking down.

[bbc.reporter]

Also, this announcement. Does Binance claim that the are presently licensed in the Cayman Islands? It appears that there is a synchronized effort to target Binance from different jurisdictions. Japan and Thailand has also begun to issue similar warnings about the exchange.



The Cayman Islands Monetary Authority (the “Authority”) wishes to inform the public that Binance, the Binance Group and Binance Holdings Limited are not registered, licensed, regulated or otherwise authorised by the Authority to operate a crypto-currency exchange from or within the Cayman Islands.

Following recent press reports that have referred to Binance, the Binance Group and Binance Holdings Limited as being a crypto-currency company operating an exchange based in the Cayman Islands, the Authority reiterates that Binance, the Binance Group or Binance Holdings Limited are not subject to any regulatory oversight by the Authority.

The Authority is currently investigating whether Binance, the Binance Group, Binance Holdings Limited or any other company affiliated with this group of companies has any activities operating in or from within the Cayman Islands which may fall within the scope of the Authority’s regulatory oversight.

Any company incorporated under the Cayman Islands Companies Act, 2020 or otherwise established or registered in the Cayman Islands that provides virtual asset services or custodian services as a business or in the course of business, in or from within the Islands must either be: (i) registered or licensed in accordance with the Virtual Asset (Service Providers) Act, 2020 (“VASPA”); or (ii) an existing regulated entity that has been granted a waiver by the Authority under the VASP

Source https://www.cima.ky/binance-not-regulated-by-cima

[malcovi2]

Is this a signal to invest in DEX platform?

[Lucius]

What else to expect from a Chinese crypto exchange that operates in a more or less gray zone all over the world? If that were not the case then they would have mandatory KYC and work permits, but their CEO has a vision in which he says that the blockchain is decentralized, so their HQ is anywhere he is located.

This philosophy of his is clearly not to the liking of the various authorities who have decided to act, so it remains to be seen whether the cat will finally catch the mouse, or whether the game will continue according to the old rules.

[Woodie]

Is this a signal to invest in DEX platform?

It might be the loophole as no one person is really responsible for running a dex and no requirements for licenses makes it ideal for cryptos survival.

What else to expect from a Chinese crypto exchange that operates in a more or less gray zone all over the world?

Let's give it to them,they still believe in some anonymity and it's users need this to some degree,it's all in the spirit of being a cryptonian.

their CEO has a vision in which he says that the blockchain is decentralized, so their HQ is anywhere he is located.

This philosophy of his is clearly not to the liking of the various authorities who have decided to act, so it remains to be seen whether the cat will finally catch the mouse, or whether the game will continue according to the old rules.

I like there strategy, the "Tom and Jerry " strategy if I may call it and it should be the only way to buy time and stay clear from further damage by the powers be.

[Lucius]

Let's give it to them,they still believe in some anonymity and it's users need this to some degree,it's all in the spirit of being a cryptonian.

They may also believe in the existence of tooth fairy, but then they have to face the fact that such beliefs will do them serious harm in the long run. As for me, let them completely kick out KYC and announce that their HQ is on the Moon or Mars, and that they won't follow any regulations that apply to planet Earth - but no other crypto exchange that plays by the rules will like that - and I believe this pressure is coming partly from them - because if the competition doesn't play by the rules, use it against them.

[bbc.reporter]

What else to expect from a Chinese crypto exchange that operates in a more or less gray zone all over the world? If that were not the case then they would have mandatory KYC and work permits, but their CEO has a vision in which he says that the blockchain is decentralized, so their HQ is anywhere he is located.

This philosophy of his is clearly not to the liking of the various authorities who have decided to act, so it remains to be seen whether the cat will finally catch the mouse, or whether the game will continue according to the old rules.

However, CZ’s philsophy and vision might also be only an excuse for him and his exchange not to comply with real laws. The exchanges runs with real employees acting under a certain jurisdiction, the exchange’s software is installed and run on hardware also located under a certain jurisdiction.

[Saint-loup]

@Darker45. All of the articles that I have read on the matter appear to be very vague and unclear. The articles said banned from undertaking of any regulated activity. Does that not imply trading with or without leverage?

That indeed implies all kinds of trading and all other activities which are regulated. The catch there is regulated. Activities happening on platforms which are not under regulation from the Financial Conduct Authority (FCA) could go on as usual. The regulatory body couldn't impose anything on them as they are not under its jurisdiction. Meaning to say, Binance.com which is operating outside the UK is beyond its regulatory powers. Therefore, what is actually under the scope of the ban are activities of Binance Markets Ltd which is what is only under FCA regulation.

According to the Financial Times, deposits from the Faster Payments network have been disabled in UK, and now SEPA transferts from all countries in Europe are also disabled. So it seems to be a very serious case. And Binance is in a critical situation.

Deposits through the UK’s Faster Payments network have also been disabled over the past week. Barclays, one of the region’s biggest lenders, said on Monday that it is barring UK clients from buying cryptocurrencies on the exchange using bank cards.

https://www.ft.com/content/bf99e9e3-d104-4a92-81a1-8bd70b884b3f [ https://archive.is/EogEy]

https://www.reddit.com/r/CryptoCurrency/comments/oeyzkj/binance_to_suspend_eur_deposits_via_sepa_until/

[tersek]

But the problem is why only Binance? what about other crypto exchange platforms? can related parties explain whether other exchange platforms are not related to money laundering?

[Saint-loup]

But the problem is why only Binance? what about other crypto exchange platforms? can related parties explain whether other exchange platforms are not related to money laundering?

AFAIK the FCA and the british banks aren't blaming Binance for being related to money laundering they are blaming it for not being fully compliant with regulation and registration requirements.
https://www.fca.org.uk/news/news-stories/consumer-warning-binance-markets-limited-and-binance-group

[Darker45]

But the problem is why only Binance? what about other crypto exchange platforms? can related parties explain whether other exchange platforms are not related to money laundering?

Binance is definitely not singled out on this. There might be others as well, but what I know is that Bybit, the world’s fifth-largest cryptocurrency derivatives exchange by trading volume which is based in Singapore, has also halted offering its products and services to its UK customers just this March because the Financial Conduct Authority (FCA) has also implemented a blanket ban on retail crypto derivatives trading.^[1] So this is definitely not solely against Binance. This is about heightened regulatory operations on cryptocurrency by financial authorities in many countries around the world.

[1] https://cointelegraph.com/news/bybit-crypto-exchange-to-impose-kyc-rules

[bbc.reporter]

@Darker45. All of the articles that I have read on the matter appear to be very vague and unclear. The articles said banned from undertaking of any regulated activity. Does that not imply trading with or without leverage?

That indeed implies all kinds of trading and all other activities which are regulated. The catch there is regulated. Activities happening on platforms which are not under regulation from the Financial Conduct Authority (FCA) could go on as usual. The regulatory body couldn't impose anything on them as they are not under its jurisdiction. Meaning to say, Binance.com which is operating outside the UK is beyond its regulatory powers. Therefore, what is actually under the scope of the ban are activities of Binance Markets Ltd which is what is only under FCA regulation.

According to the Financial Times, deposits from the Faster Payments network have been disabled in UK, and now SEPA transferts from all countries in Europe are also disabled. So it seems to be a very serious case. And Binance is in a critical situation.

Deposits through the UK’s Faster Payments network have also been disabled over the past week. Barclays, one of the region’s biggest lenders, said on Monday that it is barring UK clients from buying cryptocurrencies on the exchange using bank cards.

https://www.ft.com/content/bf99e9e3-d104-4a92-81a1-8bd70b884b3f [ https://archive.is/EogEy]

https://www.reddit.com/r/CryptoCurrency/comments/oeyzkj/binance_to_suspend_eur_deposits_via_sepa_until/

I speculate that we might first witness Binance’s daily average exchange volume slowly go down as the first early warning signal before it shuts down if it is going to shut down.

[stompix]

I speculate that we might first witness Binance’s daily average exchange volume slowly go down as the first early warning signal before it shuts down if it is going to shut down.

No way, you're forgetting who we're talking about.
CZ, the master of trade algorithms, the one who actually worked for the first exchange that starting faking volumes
Binance will report even higher volume, even if it goes down they will still have more volume in their API than anyone else!

Besides, I don't think they were getting that much business from the EU area, I think they are getting more traffic from Asia and Africa, and on top of that probably a lot of the volume isn't reflected in fiat deposits and exchanges, and I speak here as an EU citizen who has used that exchange to convert a few coins but never deposited fiat. Just dumped some tokens I wish I wouldn't have had in the first place and got out LTC (not paying 30$ for a BTC withdrawal). 

However, CZ’s philsophy and vision might also be only an excuse for him and his exchange not to comply with real laws.

Fixed that! Now you're 101% spot on!!!!

[bbc.reporter]

@stompix. Hehe okay, instead of diminshed trading volumes we should be cautious when there is an abnormal pump on trading volumes while the bitcoin news and mainstream news media publish fud in the middle of a government crackdown hehehe.

[bbc.reporter]

Presently also Gizmodo wants to join the cryptocoin fud news party for clickcbaits hehehe. The regulators are coming after Binance, we know this. However, is this claim by Gizmodo real? I have never heard anyone from the cryptospace claim that they have their coins frozen forever in Binance. Those issues always came to a resolution.



Gizmodo submitted a Freedom of Information Act request with the Federal Trade Commission, asking for any complaints filed with the FTC about Binance. The agency found 760 complaints filed since June of 2020, 200 of which were released to Gizmodo and redacted to protect private information. And while the redactions making it difficult to independently verify each individual claim, we start to see illuminating patterns.

The first, and arguably most alarming pattern, appears to be people who put large amounts of money into Binance but say they can’t get their money out. Most often, but not always, it appears their accounts were flagged for “suspicious activity” and the people are unsure how to then withdraw their money from Binance, even after trying to verify their identity. Other times, people say they deposited money but simply aren’t able to take any money out for weeks and sometimes months, assuming they could access the money at all.

Source https://gizmodo.com/32-angry-consumer-complaints-to-the-ftc-about-binance-1847200156

[slaman29]

Gizmodo submitted a Freedom of Information Act request with the Federal Trade Commission, asking for any complaints filed with the FTC about Binance. The agency found 760 complaints filed since June of 2020, 200 of which were released to Gizmodo and redacted to protect private information. And while the redactions making it difficult to independently verify each individual claim, we start to see illuminating patterns.

Remember, this is crypto we're talking about. Open up any of the trusted services on this forum and you will see 100s of complaints. Check casinos for example, where I am a user at many, and we know the admins are even active on this forum. 100s of Flags, Red Trust, and Trustpilot scam complaints. But very few actually merit a real complaint, just scammers who got caught or losers whining or people who tried to scam with fake KYC.

I believe there are 760 complaints. I don't know how many are legit, and I think most of those if not all would have been resolved.

[slaman29]

So just to update, it seems now even the last bank in UK processing EURO withdrawals/deposits for Binance has already taken the decision today to cease its services.

Meanwhile FCA has clarified UK customers can still use binance.com itself.

Tough news for EU customers I guess but has anyone felt affected by this already?

[stompix]

So just to update, it seems now even the last bank in UK processing EURO withdrawals/deposits for Binance has already taken the decision today to cease its services.

Even the last?
I've heard about 4-5 press releases from the major banks shutting down payments to Binance but still, all of them already?
Do you have any source for it?

I wonder who will take the risk to do the deal for Binance, they need a bank and a licensed money transfer gateway in the EU and with the UK stance on this, I wonder who will take the risks. I'm pretty sure it will be again some shady deal with banks running in god knows what islands with no real licensee and a shell company in either Cyprus or Luxemburg but how long will they be able to pull this stunt before their partner will also be cut from the FPN ?

I have never heard anyone from the cryptospace claim that they have their coins frozen forever in Binance. Those issues always came to a resolution.

I wouldn't be surprised if they would freeze accounts and sums, they have one serious shithole in that p2p market plus they have attracted a lot of shady users with their 2 BTC no kyc policy. We know for certain that Binance looks at your transactions and it does send data to both IRS and DoJ so sometimes it might have frozen accounts just on suspicion and they kept it like that, requesting info the user isn't able to provide, as the source of the coins or money.

Let's assume I trade on Binance and I would send my coins there, if asked to verify the source do you think they will accept a signature campaign on bitcointalk as an answer and a google sheet as proof? 

[slaman29]

Even the last?
I've heard about 4-5 press releases from the major banks shutting down payments to Binance but still, all of them already?
Do you have any source for it?

Yes, I read from an earlier source and Binance itself that Clear Junction was still honoring payments processing (this means euro deposits into Binance plus euro withdrawals out of Binance. But then this announcement itself came from their website 2 days ago: https://clearjunction.com/news/binance-transactions/

This is the excerpt quote:

Clear Junction can confirm that it will no longer be facilitating payments related to Binance.

We have decided to suspend both GBP and EUR payments and will no longer be facilitating deposits or withdrawals in favour of or on behalf of the crypto trading platform.

[bbc.reporter]

More regulators from other jurisdictions are becoming more aggressive against Binance. It might be advisable to begin withdrawing your coins slowly and be cautious. Do not make it appear that you are in a hurry hehe.

I speculate bitcoin to pump again, however, Binance’s takedown will occur on December and it will be the cause for the market bubble’s burst.



Hong Kong and Lithuania became the latest places to warn crypto exchange Binance about its operations. Hong Kong’s markets regulator said Binance is not registered to operate in its jurisdiction, while the Bank of Lithuania said it warned the company about “its unlicensed investment services.”

Source https://www.coindesk.com/hong-kong-next-to-issue-binance-warning