- Tram Ho
The world cryptocurrency market has just been dealt another blow when the UK government has just banned the Binance exchange – one of the largest cryptocurrency exchanges in the world. The UK financial regulator has asked Binance to stop all legal activities in the UK, as well as related companies including Binance Markets Limited and parent company Binance Group.
While not giving a reason for the decision, UK Financial Conduct Authority FCA emphasized that it was to “impose strict requirements” on Binance’s operations.
This is a heavy blow to the cryptocurrency market. Binance is currently one of the largest cryptocurrency exchanges in the world with multiple locations across many different countries. As of May 2021, the trading volume on Binance exchange has reached about 2.46 trillion USD per month.
Not only that, the FCA’s intervention is a sign of how closely the cryptocurrency industry is being scrutinized by financial regulators around the world. China is by far the country that has been the most aggressive in cracking down on activities related to the cryptocurrency industry.
Regulatory concerns are often related to the potential role of cryptocurrencies in illegal activities such as money laundering and fraud, and to protect consumers against a new type of transaction. which few people fully understand.
Meanwhile, Binance said that while it “seriously complies with its obligations”, the FCA’s decision “has no direct impact on the services provided by Binance.com” by the company Binance Markets Limited is a separate entity and has not yet launched operations in the UK. However, the decision still had a devastating effect on the company’s reputation.
Refer to Engadget
Source : Genk