FCA Bans Binance’s Regulated Markets; Spot Trading Still Available
Pioneer crypto exchange Binance faces a minor setback after the Financial Conduct Authority banned its regulated market operations in the UK region. Although the ban falls under the regulated trading crypto activity category, buying and selling crypto assets remains unaffected. The FCA issued an ultimatum warning the exchange to comply with its rules or eradicate all its advertising by Wednesday.
Futures, option, and tokenized stock trading are banned, but buying and selling crypto in the region continues as usual.
Binance Treads Foggy Days
The statement issued by the financial watchdog stated,
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK………..no other entity in the Binance Group holds any form of UK authorization, registration or licence to conduct a regulated activity in the UK.”
Additionally, the FCA also slapped Binance with a consumer warning order that may see its Cayman Islands and Binance Markets Limited affiliates closed down. As the crypto crackdown in other countries continues, it is unlikely that the FCA vs Binance battle is linked to China’s seizure of BTC mining operations.
According to Financial Times, Changpeng Zhao and his team are yet to respond to the demands of financial authorities. However, the backroom’s rumours suggest Binance is ready to comply with the regulation standards set.
Launching Binance UK
Binance recently revealed their plans to launch a UK-based entity. According to the exchange’s blog, the UK FCA had given it the ‘go sign’, and the platform’s operation was placed under Binance Markets Limited.
The Binance UK entity will allow traders to transact with fiat currencies like the Sterling Pound (GBP). CEO CZ termed the launch as a milestone, stating that the UK is one of the trailblazing financial markets globally with heightened financial activities of the years. The Binance head added that he hopes the launch will set an admirable trend for the incoming generation of financial enthusiasts.
A Helping Hand
On June 23, Binance received a letter from the UK South East Regional Organised Crime Unit (SEROC) commending them on helping the unit to fight dark web crypto foul players. The letter thanked the startup for helping them crack down on suppliers of controlled substances using the dark web.
.@Binance received a letter of commendation from UK South East Regional Organised Crime Unit for our efforts in helping them to fight bad players in the cyber space.
— CZ 🔶 Binance (@cz_binance) June 24, 2021
The letter signifies that even though financial regulators are watching the exchange, it is helping regulators worldwide tackle ‘hidden bad deeds’. However, with the FCA imposing a ban on its regulated trading activities, it may signify the crypto space is far from pitching a well-regulated framework.