Binance, a cryptocurrency exchange, has banned from operating in the United Kingdom. The country’s market regulator is in charge of this. This is the latest evidence of a worldwide crackdown on the crypto sector.
Before going forward. To know why this suspension is happen. We should firstly consider that what is Binance UK?
What is Binance UK?
Binance, founded in 2017, is a cryptocurrency exchange based in the Cayman Islands that offers a trading platform for a variety of cryptocurrencies. Binance was the world’s largest cryptocurrency exchange in terms of trading volume as of April 2021.
Changpeng Zhao, also known as “CZ,” was the brains behind Binance, a developer who had previously worked on high-frequency trading software. China has found Binance_UK, but due to the country’s increasing regulation of cryptocurrencies, it relocated its headquarters to the United States.
Binance has introduced two cryptocurrencies that it built itself throughout the course of its history. Binance Coin (BNB) in June 2017 and Binance Smart Chain (BSC) in September 2020. The Binance Coin was the third-largest cryptocurrency by market capitalization in 2021. Binance_UK users can use Binance Coin to pay fees on the exchange.
The German Federal Financial Supervisory Authority warned the company in April 2021 that it may face sanctions if it sold securities-tracking digital tokens without first issuing an investor prospectus.
Why FCA has Banned Binance_UK?
The Financial Conduct Authority of the United Kingdom said on Saturday that. The FCA has suspended Binance_UK Markets Limited, Which is a U.K.-based cryptocurrency exchange. From June 30, the company, which currently provides Brits crypto trading through its website. It must include a warning in a prominent place on its website. and apps showing the U.K. FCA Quotes that “Binance is not authorized to perform any regulated activity in the U.K.”
IN THE UK, BINANCE MARKETS LIMITED IS NOT PERMITTED TO ENGAGE IN ANY REGULATED ACTIVITY. Binance Markets Limited is currently not permitted to engage in any regulated activity. without the FCA’s prior written authorization due to the FCA’s enforcement of requirements. (No other entity in the Binance_UK Group is authorized, registered, or licensed to perform a regulated activity in the United Kingdom.)
Binance, the world’s largest cryptocurrency exchange by trading volume. was planning to create its own digital asset exchange in the United Kingdom. It was, however, one of the numerous crypto firms. That withdrew their applications to register with the FCA. Due to non-compliance with anti-money laundering regulations.
According to a spokeswoman for the FCA. “Binance Markets Limited withdrew its 5MLD application on 17 May 2021. FCA has Significantly follows it.” “The action against Binance_UK Markets Limited that was conducted today has been planned for a long time.”
Is Ban Temporary or Permanent?
The FCA representative underlined that the suspension was just temporary. Despite the fact that. Now there is a prohibition in Binance Markets Limited. They can not provide regulated services in the United Kingdom. Non-registered firms can still interact with British authorities. consumers. As a result, Binance_UK may still be able to offer cryptocurrency trading to British citizens via its website.
“The FCA U.K.,” a Binance spokeswoman told CNBC. This warning has made the services unaffected that are provided on Binance.com. The way we interact with our customers hasn’t changed.”
“In working with regulators. we take a collaborative approach. and we take our compliance obligations very seriously,” the spokesperson added. “In this new space, we are actively keeping abreast of changing policies, rules, and laws.”
Why is Binance-UK so Popular?
Low transaction fees and high standards of safety and security are among the reasons. why Binance_UK has become so popular since its launch in 2017. Despite the fact that users cannot swap national currencies for digital tokens. Traders and Investors used to utilize Binance all over the world to exchange cryptocurrency on a regular basis.
However, Its technology can process over one million orders per second. And also provides customers with extra services such as trading, listing, and fundraising.
Its initial coin offers (ICO) enable crypto enthusiasts to issue their own tokens in order to acquire. funding for their projects, with investors eager to get in on the ground floor of the next big thing.
In conclusion, there are still rumors that Binance_UK is not ban. All the things are available on their social media handles E.G. Twitter. The authority has explained it, itself. We will look forward to the further details. Let’s stick with us for more updates.