Binance: Who are they? And Why They Got Banned in the UK?
Binance has become the talk of the town and making headlines since July 27, 2020. The company is facing a downslope as it is getting banned by country after country. Just after China and Japan, the United Kingdom is the new country that has imposed a ban on crypto trade in Binance.
Binance: Who are they?
Binance is a Cryptocurrency exchange which works as the platform to trade various cryptocurrency. The company was founded in 2017. In April 2021, it became the world’s largest Cryptocurrency exchange based on the volume of trading.
Why did the United Kingdom ban them?
According to the Financial Conduct Authority (FCA), Binance is no longer permitted to operate its platform in the UK. FCA also noted that Binance could not undertake any regulated activities without prior written approval.
The primary reason behind this ban is they are giving service to some of the United Kingdom customers through Binace.com, which is legally not acceptable. As the firm is part of a broad Binance group, it needs to get approval from FCA for any regulatory or financial undertakings.
From January, the FCA required all Cryptocurrency exchange firms to register under them. But some of the companies didn’t respond to the notice and were trading without the authorization of FCA. Binance is one of them, and people investing in their cryptocurrency platform will not be able to get their financial ombudsman and compensation scheme, as FCA warned.
To clarify the limitation, FCA said that they do not impose any ban on crypto-assets such as Bitcoin, Dogecoin and Etherium. The ban is only over derivatives like contracts, considerable securities and futures contracts. The public already invested in crypto assets via the irresponsible but popular platform is now at higher financial risk.
