UK Tightens Rope On Crypto Market, Bans Binance Markets From Trading

The regulator specifies that the notice must be put on Binance.com and communication channels including the Binance mobile and desktop applications.

Representational Picture (AFP)

New Delhi: In a move aimed at tightening the noose on crypto currency market, the UK’s financial watchdog has banned Binance Markets Ltd. from engaging in any regulated business in the country amid a global crackdown in the crypto industry.

It is one of the most significant moves so far since the government has come down heavily on the crypto currency markets.

The company has been given time until June 30 to confirm that it has removed all advertising and financial promotions, according to the Financial Conduct Authority’s register. According to the Bloomberg report, the exchange must also make clear on its website, social media channels and all other communications that it is no longer permitted to operate in the U.K. The current order bans Binance Markets from resuming UK operations without prior written consent.

Why the ban is crucial for the crypto markets?

c-- the world’s biggest crypto exchange by reported turnover -- the FCA specifies that the notice must be put on Binance.com and communication channels including the Binance mobile and desktop applications.

Binance Markets “does not offer any products or services via the Binance.com website,” the global crypto exchange said on Twitter. “The Binance Group acquired BML May 2020 and has not yet launched its UK. business or used its FCA regulatory permissions.”

"The FCA UK notice has no direct impact on the services provided on http://Binance.com. Our relationship with our users has not changed," it added

The move brings focus on a regulatory crackdown on the cryptocurrency market because of its potential involvement in money laundering and fraud. Binance withdrew an application related to the 5MLD -- an anti-laundering directive -- on May 17 following “intensive engagement from the FCA,” according to the watchdog, which said the action had been in train for some time.

On Monday, Bitcoin gained was trading 5.1 per cent higher at $35,309 as of 7:19 a.m. in Hong Kong. The movement of Crypto often indicates the tough regulatory action as a sign that the market is maturing where there is a potential for a more robust safety net which could attracts investors to enter the space.