Regulators around the world are making it difficult for the popular crypto exchange Binance. Activities in the UK, Japan and Canada will remain restricted. How long can customers feel safe?
Binance, the world’s largest crypto exchange, is facing severe headwinds. And not just in one country, but in many. According to media reports is Financial Conduct Authority (FCA), a UK regulator, has banned Binance from offering certain services. Trading in cryptocurrencies is not directly regulated in the UK. But other related activities – such as the sale of derivatives – require approval.
Binance Markets Limited is not permitted to conduct any regulated activity in the UK. No entity in the Binance Group holds any authorization, registration or license of any kind to conduct regulated activities in the UK
So the statement from the FCA.
Not only in the United Kingdom, but also in Japan, the authorities are mobilizing against the crypto exchange. financial services agency (FSA) stated in Japan that the platform was operating without proper authorization. Binance was once warned by the FSA for the same reason in March 2018. CEO Changpeng “CZ” Zhao spoke out against reports that his company was being sued by the FSA. CZ claimed that the exchange was in “constructive talks” with the regulator on the matter.
Binance ceases operations in Ontario, Canada
The cryptocurrency exchange will no longer serve customers in Ontario, Canada from the end of 2021 after regulatory authorities there warned against trading in crypto markets. In recent weeks, Ontario has become an extremely difficult place for crypto exchanges. On April 19, the regulator introduced Ontario Securities Commission There are new rules, which the platform now apparently can’t meet. About 15 million people currently live in Ontario. Clients have time to close all active positions by the end of the year. At the same time, like customers in Japan, they can safely say that trading on the main page of Binance continues without any hindrances. This is at least true for US users, even if it is with Binance US a specific page There for this customer.
In an opening statement on recent developments, a Binance spokesperson told CNN:
We are aware of the recent report of FCA notification to Binance Markets Limited (BML). BML is a separate legal entity and does not offer any products or services through the Binance.com website. The announcement of the FCA has no direct impact on the services offered on Binance.com. Our relationship with our users has not changed.
It remains to be seen how long local users are able to feel secure.
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