The UK’s Financial Conduct Authority, or FDA for short, issued a statement in the last week of June 2021 banning Binance.com, currently the largest cryptocurrency exchange on the market. You can read more about what the FCA is, and how the body affects the operation of the Binance exchange below.
What is the Financial Conduct Authority (FCA)?
The Financial Conduct Authority (FCA) is the body that controls the UK financial markets. The FCA is overseen by the Treasury and Parliament. The main purpose of the organization is to ensure safety and fairness in the financial markets, as well as to protect consumers. At the moment, the FCA regulates 58,000 institutions providing financial services in the UK, ensuring that their activities are legal.
Binance – cryptocurrency exchange
Binance, on the other hand, is a leading cryptocurrency exchange. It was founded in 2017 and is headquartered in Malta. The Binance exchange offers over 500 cryptocurrencies, including, of course, major tokens such as Ether (ETH), Bitcoin (BTC), and Litecoin (LTC).
Doubts about the Binance exchange
Cryptocurrency exchange Binance was hoping to launch its UK branch. Unfortunately, its application for registration with the FCA was withdrawn back in mid-May. The main reason for not appearing on the UK market is the failure to meet the necessary money laundering requirements. At least, this is how the FCA sees it. Doubts about the Binance exchange are mainly argued by the criminal activity that is supposedly taking place on it, and the FCA is not the only organization that has drawn attention to this. In 2019, the IRS, or U.S. Internal Revenue Service, commissioned a study that found that nearly 28% of illegal Bitcoin (BTC) was “laundered” right on the Binance exchange.
The Binance cryptocurrency exchange is still operating and doing well. However, users originating from the United Kingdom can complain about difficulties. Although they can still conduct transactions, they face problems when trying to withdraw funds in their native currency, namely pounds sterling. Instead, they can withdraw their profits in Euros. As of June 30, 2021, Binance.com also has a sign on its website that says “Binance Markets cannot undertake any regulated activity in the UK without prior written approval from the FCA.” What will be the future of the Binance exchange in the UK? We will find out soon enough.