Bitcoin rises eagerly despite UK ban on Binance

Bitcoin rose strongly this Monday (+ 5.33%. $ 34,565), as did Ethereum (+ 8.9%. $ 1,984), despite the fact that the UK financial regulator has announced that Binance, one of the world's largest cryptocurrency platforms, will not be able to conduct any regulated activity and has issued a warning to consumers about the platform, which is coming under increasing scrutiny globally.

In a notice dated June 25 echoed by Reuters, the Financial Conduct Authority (FCA) said that Binance Markets Ltd, Binance's only regulated entity in the UK, "must not, without prior consent by writing of the FCA, carry out any regulated activity (...) with immediate effect ".

It also issued a warning to consumers about Binance Markets and the Binance group in general.

Binance said in a statement that Binance Markets, which it acquired in 2020, was not yet using its regulatory permissions and that the FCA move would not affect the services offered on its Binance.com website.

"We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We stay abreast of the changing policies, rules and laws in this new space," stated a spokesperson.

Binance announced in June last year that it had bought an FCA regulated entity and would use it to offer cryptocurrency trading services using pounds and euros.

While cryptocurrency trading is not directly regulated in Britain, offering services such as cryptocurrency derivatives trading requires authorization.

The FCA has told Binance that by June 30 it must display a notice stating that "BINANCE MARKETS LIMITED is not authorized to conduct any regulated activity in the UK" on its website and social media platforms.

It must also protect and preserve all UK consumer related records and inform the FCA that this has been done by 2 July. The regulator did not explain why it took these measures.

British citizens will still be able to access Binance services in other jurisdictions.

The FCA is stepping up its oversight of cryptocurrency trading, which has exploded in popularity in Britain alongside other countries around the world.

Since January, the FCA has required all companies offering cryptocurrency-related services to register and demonstrate compliance with anti-money laundering regulations. However, earlier this month, he said that only five companies had signed up and most were not yet compliant.

Translated by Caoimhe Toman