The United Kingdom is going after crypto exchange Binance. The yellow giant has received a warning from the UK Financial Conduct Authority (FCA), the financial watchdog, saying it must cease all regulated activities in the UK. In crypto media, it seems that Binance should completely cease its activities, but fortunately that is not the case.
As in most countries, trading cryptocurrencies in itself is not a problem. It is not illegal to buy or sell bitcoin (BTC), even in the UK. When other trading products are offered, this becomes a different story. The FCA probably refers to the trading of futures and options contracts by “unregulated activity”.
Also, Binance must stop all its advertising campaigns. Binance must meet all requirements by June 30:
“The company will remove all advertising and financial promotions it currently has live in whatever form or, where this is not feasible, provide instructions for the removal of all advertising and financial promotions it currently has, by June 30 at the latest. 2021,”
In short, Binance will be allowed to keep its spot exchange up and running. Reports stating that Binance should completely close its doors in the UK is therefore incorrect. These types of news items are also called fear, uncertainty, doubt (FUD) messages.
If Binance still wants to offer futures and options contracts, it will have to receive approval from the FCA. Existing crypto companies must do this before March 31, 2022. However, the FCA is known for being very strict when it comes to granting approvals. Only five companies managed to obtain the stamp so far.
The British are keeping a close eye on the crypto sector and crypto in general. Recently, the news appeared that the police seized 114 pounds of laundered bitcoins.