The blockchain industry has again faced another obstacle, as Financial Conduct Authority (FCA), United Kingdom’s (UK) financial regulator, banned Binance.
With the new development, Binance, which is one of the world’s largest cryptocurrency exchanges, can no longer conduct any regulated activity in the country.
In a notice seen by Unmask NG, the regulator also issued a warning to consumers about the platform, which is coming under growing scrutiny globally.
The ban on Binance, a significant blow
With a trading volume of about $2.46 trillion as of last two months (May 2021), Binance had emerged as one of the larges crypto exchanges in the world.
The company’s reputation has been exposed, such that trading in a major market will now be laced with skepticism.
It is however unclear how Binance will address this, but the crypto has sure been put under pressure.
Below are what you should know:
- The ban did not mean British citizens will no longer be able to access Baninance’s offerings in other jurisdictions.
- The ban shows that the FCA is stepping up its oversight of cryptocurrency trading, which has soared in Britain along with other countries around the globe.
- While trading of cryptocurrencies is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives does require authorisation.
- While there are speculations that Binance was banned to caution against money laundering and fraud in the country, the regulator did not explain why it had taken these measures.