The world is modernizing with the updates and latest technology to meet the futuristic approach. People have shifted towards the digital platform to begin their business journey and in the world of business, cryptocurrency started playing its role.
But it looks like people don’t want to get involved in cryptocurrency anymore because China shut down crypto mining and asking banks to stop supporting cryptocurrency. The United Kingdom has also come forward with the big headline.
The Binance banned by the UK’s financial regulator. It was unfortunate because since China took the action against cryptocurrency no one thought England would take such a step and ban one of the world’s well-known cryptocurrency exchange firms.
UK Ban World’s Biggest CryptoCurrency Exchange Binance
The Financial Conduct Authority (FCA) has released a statement that “the firm cannot conduct any “regulated activity” in the UK.” Not only that, but they had also issued consumer warning advised material on their website too.
In which they advised that the people need to be wary of adverts promising high returns on crypto-asset investments.”
To clear the air, Binance isn’t a UK-based firm so surely it won’t create any impact on the UK’s residents who bought the crypto-currencies or sold them through the website.
Plus Binance surely not officially registered with the FCA, therefore they won’t be able to operate any exchange in the UK.
What is Binance?
Binance.com is an online-based exchange firm, which offers its services and products. This includes including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts, and even lending.
Binance group currently located in the Cayman Islands, but their limited market firms also established in London as well.
FCA Statement:
The FCA further said, “Binance Markets Limited (BML) owned by Binance Group, and not currently permitted to undertake any regulated activities without the prior written consent of the FCA. It has until Wednesday to comply with the ruling.”
The regulator also highlighted, that there isn’t any such entity in the Binance Group which holds any sort of license, registration, or authority to conduct any financial exchange deals in the UK.
To enhance your knowledge, that’s not the first time Binance came under the roof of controversies. In the US, Binance holding one of their firm’s entities which came under the radar of the US Security and Exchange Commission (SEC) who investigated and found the officials involved in money laundering and tax offenses.
And the same thing happened, US security issued a warning statement to the consumers of the Binance about the situation.
Another big incident took place on Friday, where Japan’s Financial Services Agency (FSA) warned the Binance for the second time in three years for operating their business without permission in Japan.
According to Coindesk, one of Binance’s services known as fiat on-ramp in the industry in which it allows the local currency to buy the bitcoin.
In the mid of June Silvergate Bank, one of Binance’s partners decided to stop the US dollar deposits along with the withdrawal ones too.
Nick Saponaro Has Something To Say
Nick Saponaro whose a long-time cryptocurrency investor and entrepreneur talked to the BBC and shared things about Binance.
“Binance has throughout their operations, moved several times to new jurisdictions,” “That’s not uncommon for these fledgling crypto businesses…if the regulations don’t suit their needs, they just move their operations.”
Another of the firm’s entities – Binance.US – is currently one of the biggest digital currency exchanges in the US, and Binance is one of the biggest firms in the global fintech industry,
Further, he added, “I do believe they are trying to comply with regulations, but often with these businesses it’s an ‘ask for forgiveness’ model, [where] they hope they can make enough money so if they do incur a fine, it’s negligible compared to what they’ve earned.”
“We’re 12 years into the crypto adoption cycle, these things just take time – the same things were said about the internet initially,” he said.
“Governments of each jurisdiction, especially the G7, need to with full transparency and confidence give us the full regulations about what we can and cannot do, and it needs to fit what the technology does.”
Binance’s UK crypto exchange chances have been shattered, although it’s a big thing for any firm to face such a ban from the government. But on the other hand, what they have done or done for the past years is also considered unappropriated and unethical.
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