Binance is facing strong headwinds worldwide. Positive news is sure to come in handy. The FCA has now announced that the crypto exchange meets all the requirements. And in the UK it is allowed to act again.
August 25th announced the UK Financial Conduct Authority (FCA) that Binance meets the requirements placed on them and is therefore allowed to act again. It has been difficult for the crypto exchange for the past few months. It was exposed to regulatory pressure around the world. It wasn’t until June 25, 2021 Binance banned by the FCA from offering certain services in the UK. In addition, she warned all consumers to exercise caution with unregulated crypto exchanges. Trading in cryptocurrencies is not regulated in the kingdom. But the authority regulates and monitors the activities of companies that offer derivatives on Bitcoin or, for example, Ethereum. The FCA said on its corporate website at the time:
Binance Markets Limited is not permitted to engage in regulated activities in the UK. This company is part of a larger group (Binance Group). Due to the requirements of the FCA, Binance Markets Limited is currently not permitted to conduct regulated activities without the prior written consent of the FCA. No other Binance Group company has any form of UK authorization, registration or license to conduct regulated activities in the UK.
Binance boss satisfied with the FCA’s decision
With the decision made by the British authority FCA on August 25, the crypto exchange is again exposed to a little less regulatory pressure. CEO Changpeng “CZ” Zhao should also be relieved about this. Because he tweeted on the same day:
A few years ago you could compare the crypto exchange landscape with the “Wild West”, a time when traders of crypto currencies sometimes saw themselves outside the law, today it looks less wild. Nowadays the law enforcement officers are far more active and restrict the trading activities of crypto exchanges more and more often.
The FCA’s re-authorizing Binance Markets Limited coincides with a series of messages that show Binance’s effort to reconcile itself with the world’s governments. After Binance was founded, it was possible even earlier to trade with just a password and a stored email. After the regulatory pressure has been increasing recently, the crypto exchange adapted and introduced a general identification requirement for customers on August 20 and tightened the identity verification processes. So it happens that crypto exchanges around the world are increasingly bowing to the law enforcement officers and cooperating with them.