Get the weekly summary of crypto market analysis, news, and forecasts! This Week’s Summary The crypto market ends the week at a total market capitalization of $1,165 trillion. Bitcoin is up by over 2% after a rollercoaster of a week. Ethereum decreased by almost 1% over the past seven days. XRP gained more than 15% in value this week. Almost all altcoins are trading in the green, with very few exceptions. The DeFi sector decreased the total value of protocols…
Binance Group Finally Responds to The FCA’s Consumer Warnings
In a recent press release, the Financial Conduct Authority of the UK recently issued a consumer warning on the products and services of Binance Markets Limited and the Entire Binance Group.
The release highlighted the reason for banning the activities of Binance global. However, The Binance group later released a series of statements on Twitter on the extent of the Ban.
Crypto Platforms Must Adhere to FCA Regulations
Generally, to participate in the regulated activities, the platforms must adhere to the set of regulations. However, according to the FCA, the Binance network will not conduct any regulated activities since it does not have the FCA approval.
The FCA noted that although they do not directly control assets like bitcoin and Ether, they have powers to regulate types of assets like futures, options, and derivatives. Moreover, the FCA has authority over any asset they consider security.
Therefore, each crypto-related firm offering the regulated services must get the direct authorization of the FCA. Since neither BML nor the Binance group is registered or approved to provide these services, the FCA considers it a risk to unknowing crypto users in the UK.
Binance Response to The Ban
Soon after the FCA released their statement, the Binance exchange responded on Twitter. In their response, the Binance global network noted that the FCA ban would affect only the services provided by the BML, which is an almost independent service provider hosted by Binance.
In a series of Tweets, Binance global noted that they acquired the BML in 2020 and have not yet started using the platform or its services in the UK. Therefore, they highlighted that the new regulations would only affect the BML but not directly impact other services provided by the Binance network.
The Binance network also noted that they are always ready to work with regulators and comply with all the requirements.
Some Twitter users criticized Binance for not taking the FCA ban seriously. For instance, some noted that based on FCA’s release, the whole Binance group operations are banned, not just the BML.
“I’m surprised @binance is ignoring the statement “No other entity in the Binance Group holds any authorization… “. This deliberate misinterpretation (or misinformation) of a clear Regulatory Statement is deadly.”
However, Binance still reiterates that other activities like spot trading will continue normally, and the users of the platforms will be served well.
Facing Regulatory Issues in The Past
The FCA regulation issues are just part of the many regulatory and compliance problems that Binance has gone through in the past. For example, in the US, Binance exchange activities were banned because the platform supports illegal activities.
However, Binance, together with a group of investors, opened the Binance US platform, whose services are accepted in 43 states in the US. Even earlier, the platform had to move its head offices from China to Japan and other regions, finally resting in Malta.
Therefore, although the Ban may affect services in the UK, Binance users globally can still use the network’s services.