Binance Gets Banned in UK

The fact that the largest cryptocurrency exchange agency called Binance had been banned from carrying out business in UK. This is one of the reason that shows the crackdown on the crypto market around the world.

“Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” a spokesperson for the FCA told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”

Binance Gets Banned in UK

But there is some of the ways that there can be some cryptocurrency exchange going on. Though Binance Markets Limited is banned from offering regulated services in Britain, non-registered firms can still interact with U.K. consumers.

A Binance spokesperson told CNBC: “The FCA U.K. notice has no direct impact on the services provided on … Our relationship with our users has not changed.”

“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously,” the spokesperson added. “We are actively keeping abreast of changing policies, rules and laws in this new space.

The FCA has stated that Binance is not permitted to conduct regulated activities in the U.K.,” Laith Khalaf, financial analyst at AJ Bell, said via email. “Providing access to cryptocurrencies itself is not a regulated activity, but offering derivatives is, which is presumably the activity the FCA is clamping down on.”

However UK is not the only place where Binance is facing a lot of problem with this. Japan had also warned Binance that they are operating in the country without any permission from the government. China had also taken the drastic step of making sure that every cryptocurrency miner had to move out of the country.

“The FCA U.K. notification has no direct impact on the services provided on,” a Binance representative said. Our connection to our customers remains the same.

The spokesman continued, “We take our compliance obligations extremely seriously, and we adopt a collaborative approach in dealing with regulators.” We are vigilantly monitoring the development of new regulations and legislation in this area.

An analyst at AJ Bell, Laith Khalaf, wrote via email that the Financial Conduct Authority has said Binance cannot engage in regulated operations in the United Kingdom. Although “providing access to cryptocurrencies in and of itself is not a regulated activity,” the offering of derivatives is, and this is likely what the FCA is trying to crack down on.

The FCA isn’t the only organisation putting the brakes on bitcoin.

Last Monday, the Financial Services Agency of Japan issued a warning that Binance was operating illegally in the country.

Meanwhile, China is making more measures to put an end to cryptocurrency speculation by issuing bans on cryptocurrency mining in some provinces and strongly recommending that financial institutions refrain from providing cryptocurrency-related services.