As Bitcoin and other cryptocurrency adoption grows, regulations have begun the process of tightening up. A perfect example of this would be how the Financial Conduct Authority (FCA) of the UK recently discussed how Binance doesn’t have the authority to partake in any regulated activities.
On June 25th, FCA stated that Binance’s sole operated UK entity, Binance Markets Ltd, “must not, without the prior written consent of the FCA, carry out any regulated activities… with immediate effect”. In January 2020, FCA banned the use of cryptocurrency derivatives and exchange traded notes (ETNs). The FCA is starting to take cryptocurrencies and blockchain companies more seriously.
No later than June 30th, Binance must put out a statement saying “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” on its website and any other Binance owned media channels.
Binance stated that Binance Markets weren’t using its regulatory authority and that the FCA’s decision would not alter services provided on the Binance.com website. The good news is that British citizens will be able to access Binance’s offerings and services in other jurisdictions and on Binance’s official website as it operates outside of the FCA’s jurisdiction.
Buying and selling crypto assets remain available as well as spot trading. Tokenized stock trading and options have been banned.
This is not necessarily a Binance issue but a crypto issue for regulations in general. This is something we must watch and take seriously. More regulations tightening for various projects could stifle innovation. We’ll keep you updated as the story unfolds.