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Crypto Industry Insiders: It Doesn’t Matter If U.K. Banned Binance Exchange, That Has Nothing To Do With Trading Activity In The Country

Crypto Industry Insiders: It Doesn’t Matter If U.K. Banned Binance Exchange, That Has Nothing To Do With Trading Activity In The Country

Binance

Crypto Industry Insiders: It Doesn't Matter If U.K. Banned Binance Exchange, That Has Nothing To Do With Trading Activity In The Country Photo by: STRF/STAR MAX/IPx 2021 3/12/21 Binance under investigation for Bitcoin (BTC USD) cryptocurrency price trading. STAR MAX Photo: Binance app photographed off an iphone 8 pro.

The U.K. has issued a ban on trading on Binance, the largest cryptocurrency exchange in the world by trading volume, but local investors are still active on the Binance Exchange.

The U.K.’s financial watchdog, Financial Conduct Authority (FCA ), has warned Binance it can’t operate regulated activities without approval. 

“While we don’t regulate cryptoassets like bitcoin or ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities,'” the FCA said in a statement.  “A firm must be authorized by us to advertise or sell these products in the UK,

The FCA announced on June 26 that Binance Markets, Binance’s only UK-regulated entity, cannot carry out regulated activities without “prior written consent,” even if it has permissions in place, Business Insider reported.

Starting on June 30, Binance must notify U.K. users of the FCA’s restrictions on its website and apps.

It must post the following text: “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorization, registration or license to conduct regulated activity in the U.K.).”

Binance’s main exchange is not U.K.-based, so people in the country who buy and sell cryptocurrencies via its platform will not be affected by the ban, according to the crypto exchange provider.

“The FCA U.K. notice has no direct impact on the services provided on Binance.com,” a Binance spokesperson told Insider. “Our relationship with our users has not changed.”

Twitter users were confused and outraged by the reports that Binance was banned in the U.K. Binance attempted to clarify the meaning of the ban in a series of tweets.

“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 http://Binance.com website,” the company tweeted.

It added that the “FCA UK notice has no direct impact on the services provided on http://Binance.com. Our relationship with our users has not changed.”

“This news has been misinterpreted,” Born of Stars @dCryptoRepublic tweeted I”f you read the article you will understand that it can only apply to the trading of security tokens and crypto derivatives. The article says nothing in relation to the spot price trading of non-security tokens.”

Nzekete AG @AMakuyana tweeted, “I’m surprised @binance is ignoring the statement “No other entity in the Binance Group holds any authorisation… “. This deliberate misinterpretation (or misinformation) of a clear Regulatory Statement is deadly.”

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Binance had aimed to launch a U.K.-based trading platform in 2020, but the company still has not obtained approval from the FCA. It is among 90 percent of crypto businesses to have withdrawn its application after “intensive engagement” with the U.K. regulator, Decrypt reported. 

The U.K. isn’t the only country clamping down on the crypto sector.

Japan’s Financial Services Agency also warned that Binance was operating in the country without its permission. China has increased efforts to eliminate crypto speculation, ordering digital currency miners to stop operations in several regions. The country has also urged banks and payment firms not to offer crypto-related transactions and services, CNBC reported.

Binance is facing an investigation by the U.S. over money laundering and tax concerns. Based in Malta, Binance has offices in 12 countries including Uganda. Its U.S. office is in San Francisco.