A company’s spokesperson wrote an email saying that the notice from the FCA only restricts the company’s operations but it can never interfere with the company’s permissions.
As per an article in a global publication Bloomberg, Binance, specifically BML (Binance Markets Limited), was officially banned by the financial watchdog from transacting any business (regulated) in the UK. This is the most significant move involving such an established cryptocurrency player as BML. As per the Financial Register linked with Binance, the crypto giant was given a deadline, June 30, for confirmation that it has removed any promotions and financial adverts related to crypto. Additionally, Binance will be required to reveal to its client on its website that it will no longer be having operations in the United Kingdom. The revelation should extend to the company’s social media accounts and any other channels of communication used. Without a written consent by UK authorities, it would be illegal for Binance to resume crypto trading operations in the UK.
Though the target of the ban is limited and separate from Binance, arguably the world’s largest cryptocurrencies operator, still the regulator insists that the notice should appear on Binance.com including its other communication channels (desktop apps and mobile apps).
We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML).
BML is a separate legal entity and does not offer any products or services via the https://t.co/QILSkzx7ac website. (1/4)
— Binance (@binance) June 27, 2021
Immediately after the notice, and via a tweet (on Sunday), the cryptocurrency exchange said that Binance Markets never uses Binance.com to offer any products and services. A company’s spokesperson wrote an email saying that the notice from the FCA only restricts the company’s operations but it can never interfere with the company’s permissions.
Binance Man in the UK: Why?
The latest development extends the global crackdown on cryptocurrency that has been recently going on. Most countries are concerned about cryptocurrencies being used as instruments of fraud and other global financial crimes like money laundering. On May 17, Binance withdrew an application targeting a directive, 5MLD, on money laundering.
According to the watchdog, the decision for the withdrawal of the application resulted from constant pressure coming from FCA. The watchdog further added that they’ve been pursuing Binance for sometime on that matter. A spokesperson linked with FCA was also quoted saying that most Cryptocurrency businesses have of late been reluctant on complying with the set standards and playing by the rules which has increased the number of application withdrawals.
On Monday, Bitcoin, which has been having a rough month, was trading above $35,000 at around 7:20 a.m, Hong Kong time. This was a 5.1% price increase. Typically, sellers interpret tough actions against the crypto markets as an indicator for growth and maturity of the market. Pundits also think that with tough regulatory actions, the crypto market is bound to enhance security which may eventually appeal to more investors who may be interested in joining the bandwagon. It’s only last year that Binance had announced its acquisition of an FCA-regulated firm, including a plan to launch its UK branch.
Patrick is an accounting & economics graduate, a Cryptocurrency enthusiast, and a Blockchain technology fanatic. When not crafting informative pieces on any of the above subjects, he will be researching on how the Blockchain technology can transform the world, particularly the financial space.