Binance Finds Itself Out of the UK
The United Kingdom just told Binance that it needs to pack its bags and get out of there. It’s financial regulator told Binance that it needs to cease and desist on any type of regulated activity within UK’s borders. The cryptocurrency exchange will have to leave the country by the end of June. Yes, June 30th, that’s the end of this month.
Binance says that your funds and everything is safu via tweet saying that everything is fine. So is Binance misunderstanding or is the FCA going after an entity related to Binance but not against the Binance chain itself? That is the point of confusion.
Reports also indicate that Binance will not be able to offer unregulated services to its consumers in UK either.But Binance is not only seeing issues in UK but in Japan and in places like Ontario as well.
Here is what you need to know about Binance and this latest set of events.
The UK FCA Says To Cease Activity in the UK
The Financial Conduct Authority in the UK noted that Binance must cease regulated activity within its lands. The firm will not be able to offer services like real time trading in the United Kingdom. The financial affairs entity noted that Binance Markets or any entity related to the Binance group can not operate within the UK.
It notes that it provides the authority to do so and unless it does, the entity must respect that and hold its business elsewhere.
The FCA goes on to note that it is necessary to be aware of different entities that may seek to sell you digital assets and promise high returns. It also notes that many firms may advertise these various assets but that if you invest in certain digital assets that you will not have access to the services of the Financial Ombudsman Service, or the Financial Services Compensation Scheme if the purchase of these assets or schemes were to go awry.
The Government Is Here to Protect You From Binance?
That is an important point to make as it brings about the element or theme that the government is here to protect you. It indicates that the government ensures to provide a system to where you are protected and secure and stepping outside of that system can create issues for you.
That is true to a certain extent. Some people may want to prosecute Elon Musk for manipulating the price of Dogecoin, they purchase Doge at the peak or close to the peak point, then Doge fell down and they lost a good bit of savings. Then there are those on the other side of the (bit) coin, they will note that that it is up to you to protect yourself and make the best decisions in life and investments. If something goes wrong, you should have been prepared to accept the consequences.
Banning Binance in the UK is a pretty big deal. Binance serves as one of the large cryptocurrency exchanges in the world by volume and extent of services provided. This makes one wonder if UK will be one of the first to ban Binance and where other countries will certainly follow.
It is even more important to note that Japan has issued a warning to Binance on its services.
Binance Responds
Binance notes via tweet that it will continue operations and that the FCA guidelines does not affect Binance.com in any way. The FCA seemed rather clear that it was targeting Binance. It looks Binance may have to suspend operations until it gets its compliance affairs straightened out in UK, Europe and Japan. We will see what happens by the end of this month.
The Government Watchdog Did Not Say Anything about Other Digital Asset Entities in the UK
It is necessary to note that the United Kingdom has not said anything on other digital asset exchanges in the United Kingdom, Coinbase, BC Bitcoin, Localbitcoins, Quickbitcoin, or others. It does not seem like a broad attack on cryptocurrency in general.