Binance is one of the major cryptocurrency exchanges worldwide. However, the exchange received a warning from the Financial Conduct Authority, causing Binance to get banned in the UK.
Binance is one of the largest crypto exchanges globally, founded in 2017. It offers a platform to trade numerous cryptocurrencies.
Binance has headquarters in the Cayman Islands. It offers digital wallets for clients to put funds and other financial assets or services made in crypto and blockchain.
According to FCA, Binance could not conduct any regulated activity in the UK.
Binance receives order to pull all the advertising from the country by June 30
This rule came with a warning to the public. It recommends customers be cautious of ads that guarantee high returns on crypto-assets.
The interest around Binance has brought new signs that banks are analyzing payments by their retail customers to exchanges. Only five major crypto companies have successfully registered with the FCA for anti-money laundering supervision.
Anti-laundering supervision is needed to gain approval for running a crypto asset business in the UK.
Though, several dozen of crypto asset companies still await that approval.
According to the FCA, around 2.3m UK resident owns cryptocurrency. Besides, a broader majority of them use offshore registered exchanges, like Binance, for their deals.
Non-UK exchanges aren’t required to register with FCA, even though they might have UK clients. It makes the situation more complex and complicated for banks to navigate.
How did the shutdown affect the financial market?
However, according to Binance’s response, the FCA notice won’t directly impact its services. The Binance exchange is not based in the UK. It means that the law won’t impact UK residents that use the binance website for trading.
Although Binance promised that this change wouldn’t affect their services, some UK customers have already reported issues with withdrawal and payment procedures. The Faster Payments Network is also moving to delay Binance payments.
Surprisingly, it turned out Binance’s crackdown had a minimal effect on the crypto market. Bitcoin price raised by 7% and reached $34.445 over the weekend.
According to CloseCross, the UK traders continue to be optimistic about the price of Bitcoin and Ethereum
CloseCross platform provides the forecast for the price of Ethereum and Bitcoin from the client’s view.
Surprisingly, the platform showed that almost every trader believes both cryptocurrency prices will remain stable or even increase over time.
More specifically, on June 26 and June 28, FCA announced the CloseCross survey’s result. The results showed that approximately 3 out of 4 traders see Ethereum and Bitcoin’s future positively. Only 25% of the surveyees await the failure.