Binance ban surfaced after they did not meet the anti-money laundering demands of the UK Financial Conduct Authority. Find Raj Chowdhury’s insights on it
The biggest crypto exchange of the world as per trading volumes, Binance, has been banned in the UK and it happens to be the latest sign of a crackdown developing on the crypto market from global regulators.
Failing to meet the anti-money laundering requirements of the Financial Conduct Authority of the UK, Britain’s FCA told Binance Markets Limited that they aren’t permitted to carry out any kind of regulated activity within the UK, and they also need to notify their UK users through their apps and website.
- FCA Mandates:
As a financial regulatory authority in the United Kingdom; the FCA works independently of the UK Government. Lately, concerning the Binance ban, FCA clamped down on the derivatives as crypto trading doesn’t fall under regulatory scope. According to FCA, crypto giant Binance can provide services of crypto trading through their website, despite the ban. While the extent of the prohibition is to separate legal existence from the biggest crypto exchange associated with the reported turnover — the professionals of FCA specified that they need to notify it on their official website and apps as well.
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Earlier in June, Japanese regulators warned Binance from working in Japan before being pulled out of Ontario after regulatory actions were taken against different exchanges. This move amounts to an administrative crackdown as far as the crypto sector is concerned.
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- Insights on Binance’s Ban From HashCash’s Chief:
“Allowing access to cryptocurrencies is not a controlled activity. However, these incidents highlight that while blockchain technology is decentralized and borderless, technologies developed for supporting public and open blockchain are not. The scenario is blurred from many angles,” stated Raj Chowdhury, Founder of HashCash Consultants.
“Crypto bulls ordinarily represent complicated legislative action dispensing a warning that the cryptocurrency market is developing, and managing the potential for a more effective security net can lure additional investors. Is this condition a net-negative concerning the cryptocurrency space? Certainly not! I think it bestows maturity,” Chowdhury added.
Cryptocurrency markets do not happen to be big enough as far as posing a systemic threat in the existing situation is concerned, however, if they proceed to proliferate and develop, regulators might not be content on the front.
