The cryptocurrency exchange Binance has been banned from operating in the United Kingdom by the country’s market regulators. This is the latest sign of the global crackdown on the cryptocurrency market.
On Saturday, the U.K. Financial Conduct Authority said that Binance Markets Limited, Binance’s U.K. branch of Binance, should not cooperate in any regulated activity in the U.K.
By trading volume, Binance is the world’s largest cryptocurrency exchange. It plans to launch its digital asset market in the U.K. However, several encryption companies withdrew their application for registration with the FCA because it did not meet the anti-money laundering requirements.
Binance has stated that the Financial Conduct Authority (FCA) actions will not affect the services provided on its website
They added that British residents’ access to its website would not be affected too. However, Binance customers said they could not deposit or withdraw pounds on the platform on Tuesday. It happened a few days after British regulators cracked down on some of their activities in the country.
Many users complained that Binance did not provide any information about blocked transactions except for the “downtime maintenance” message.
Although, according to the primary cryptocurrency exchange Binance’s statement on Wednesday, its platform’s GBP withdrawals are facing restrictions. Users can also use debit and credit cards to purchase digital coins.
FCA is not the only regulator to crack down on the encryption industry.
The Financial Services Agency of Japan warned last week that Binance would conduct business in the country without its permission.
Binance provides services ranging from digital token trading to derivatives and emerging technologies such as stock tokenized versions. Its cryptocurrency, Binance Coin, is the fourth largest cryptocurrency in the world. Its market value is approximately US$45 billion.
Bitcoin, Ethereum, and Dogecoin slightly recovered as the Binance ban highlighted the maturity of cryptocurrencies
Investors see the crackdown as a sign that the crypto market is maturing. The company will have to speed up the process of becoming a regulated exchange, which may increase trust among crypto traders.
The rise of cryptocurrencies is also that gold GC00, +0.27%, is facing heavy selling pressure.
The decline of the gold contract on Tuesday may exceed 1%. It might exacerbate the exit of gold and the entry of crypto by some investors.
Some analysts believe that Bitcoin, the most prominent catalyst in the crypto world, may test the resistance level of around $40,000 as a bullish signal.