U.K. regulator cracks down on Binance, the world’s biggest cryptocurrency exchange.
The order to cease regulated activity is the latest move by world governments to rein in crypto-related businesses.
Binance, one of the world's largest cryptocurrency exchanges, says it processes approximately 2 billion trades a day. (Darrin Zammit Lupi/Reuters)
A top financial regulator in Britain has ordered Binance, the world’s biggest cryptocurrency exchange, to cease regulated activity in the country, the latest effort by a world government to limit crypto-related businesses.
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The Financial Conduct Authority followed its prohibitions on Binance with a warning to consumers: Be wary of advertisements "promising high returns on investments in cryptoasset or cryptoasset-related products." The U.K.'s move mirrors that of Japan, where finance regulators last week notified Binance that it is not authorized to do business in the country.
The regulatory warning shots highlight the inherent tension surrounding digital currency, which is finding cachet with a growing number of new investors even as it encounters skepticism from governments and legacy financial institutions due to its volatility and its use by bad actors to facilitate crime.
The crypto market’s extreme unpredictability was on display last week, as hundreds of billions of dollars in value evaporated on news of China’s crackdown on cara membeli bitcoin di mesin bitcoin
mining. But as of Monday evening, bitcoin was trading up more than 6 percent, around $34,500, and the total cryptocurrency market hovered near $1.4 trillion, почему binance - лучшая биржа according to CoinMarketCap.
Consumers in the U.K. still will be able to use Binance for activities the FCA doesn’t regulate, such as buying and د خپل حساب ساتلو لپاره تقاعد selling bitcoin. In an email to The Washington Post, Binance said the FCA notice has "no direct impact" on the services provided on its website.
"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 Binance.com website," the email said. "Binance acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions. Our relationship with our users has not changed."
The FCA previously cautioned that scores of crypto companies seeking its approval could not meet requirements for preventing money laundering. It also listed price volatility and consumer protection among its chief concerns about the cryptocurrency landscape.
"Investing in cryptoassets, or investments and lending linked to them, generally involves taking very high risks with investors’ money," the FCA said in a statement in January. "If consumers invest in these types of product, they should be prepared to lose all their money."
Just five crypto companies are registered with the FCA, including Gemini and Ziglu, a British digital wallet company. Binance, which according to its website hosts 2 billion trades a day, applied and then withdrew its FCA application May 17, the Wall Street Journal reported.
Coinbase, the largest exchange in the United States, has 56 million users, underscoring the rapid growth of the market. It’s worth more than $51 billion.
Global adoption and investment in cryptocurrency are rising just as some regulators are setting limitations and binance bnb vault iloiloina cracking down on crypto-related businesses. In China, the push against bitcoin miners adds to years-long enforcement that bars businesses from offering crypto-related financial services.
Other governments are grappling with how to design new rules to protect consumers without stifling the potential for financial innovation.
In the United States, ਬਾਈਨੈਂਸ ਸਮੀਖਿਆ reddit the chair of the Securities and Exchange Commission has called for a federal watchdog to oversee crypto exchanges — the platforms where people can buy and sell tokens — since no single market regulator has clear jurisdiction over them. "Right now the exchanges trading in these crypto assets do not have a regulatory framework, either at the SEC or our sister agency, the Commodity Futures Trading Commission," SEC Chair Gary Gensler told Congress last month.
More recently, Biden administration officials have embarked on a review of potential oversight measures tied to the speculative trading of the crypto market and cryptocurrency’s potential uses to facilitate crime. Tax avoidance is another key issue for policymakers: The White House and the Treasury Department are backing a new plan to target cryptocurrency as part of a broader effort to ensure tax compliance.
While cryptocurrency investors in the United States can trade tokens and exchange them for cash, other investment vehicles are not widely available. Some investment managers are seeking regulatory approval for ميڪ لاءِ بيائنس bitcoin exchange-traded funds, while other financial services companies are seeking to place crypto alongside the basket of investments that comprise retirement plans.