Cryptocurrency business organizations and traders are not new to controversies, and nobody understands this better than crypto blockchain Binance. In its recent detailed verdict, UK’s Financial Conduct Authority (FCA) has imposed a ban on Binance, one of the world’s most recognized exchanges.
People used to sell a wide range of digital assets while using this platform. But regulators frequently expressed their growing concerns over the ease with which cryptocurrencies are used in criminal and money laundering activities.
UK’s Financial Conduct Authority (FCA) warned repeatedly that investors who will keep investing in crypto business could lose their money. But what does the Binance ban mean for the customers?
The FCA further stated Binance Markets Ltd, the company’s only regulated entity in the UK, “should not carry out any financial practices, without the prior written consent of FCA… with immediate effect”.
Under the sanctions imposed by FCA, Binance Markets Ltd is currently not authorized to carry out any regular activities, without FCA’s permission. Binance has applied to become FCA authorized platform, but they withdrew their application last month.
Back in January, UK authorities banned any sort of sales of crypto and digital currencies to retail investors. Cryptocurrency derivatives allowed people to bet on the bitcoin prices without buying bitcoin. FCA further added that the explicit use of derivatives can double or triple the returns and losses.
Binance in their recent statement announced that customers can still trade via Binance.com. Customers will have the access to all the services via the company’s website, customers who are not based in the UK fall outside the FCA’s jurisdiction.
Rabya Anwar, a legal associate at Keystone Law, added that the current order by FCA is a “clear message” to the entire crypto community of the UK. Other cryptocurrency traders and market participants must bring transparency in their operations, prepare and be under no illusions.
So Binance needs to confirm that they are authorized by FCA. While previous announcements from the US and China caused massive fluctuations in crypto price, the recent sanctions exercised by FCA hardly have any impact on the prices whatsoever. The most recent stats have shown that bitcoin still trading in the open market above $34,000 on Monday.