Regulators around the world are making the popular Binance crypto exchange difficult. Activities in the UK, Japan and Canada will be restricted. How long can customers feel safe?
The world’s largest crypto exchange Binance has to contend with fierce headwinds. And not just in one country, but in several. According to media reports has the Financial Conduct Authority (FCA), a UK regulator, banned Binance from offering certain services. Trading in cryptocurrencies is not directly regulated in the UK. But other related activities – such as the sale of derivatives – require approval.
Binance Markets Limited is not allowed to conduct any regulated activity in the UK. No entity in the Binance group holds any form of authorization, registration or license to conduct regulated activities in the UK
so the statement by the FCA.
Not only in the United Kingdom, but also in Japan, the authorities are mobilizing against the crypto exchange. The Financial Services Agency (FSA) in Japan said the platform was operating without proper authorization. Binance was warned once by the FSA for the same reason in March 2018. CEO Changpeng “CZ” Zhao spoke out against reports that his company was being prosecuted by the FSA. CZ claimed that the exchange was in “constructive dialogues” with the regulator on the matter.
Binance ceases operations in Ontario, Canada
The crypto exchange will also no longer serve customers in Ontario, Canada from the end of 2021 after the regulatory authorities there warned against doing business in crypto markets. In recent weeks, Ontario has turned out to be an extremely tough place for crypto exchanges. On April 19, the regulator introduced Ontario Securities Commission there new regulations, which the platform can now apparently not meet. About 15 million people currently live in Ontario. Customers have until the end of the year to close all active positions. At the same time, like customers in Japan, they can safely say that trading on the Binance main page continues undeterred. This is at least true for US users, even if it is with Binance US a specific page for this clientele there.
In an initial statement on recent developments, a Binance spokesman told CNN:
We are aware of recent reports of an FCA notification to Binance Markets Limited (BML). BML is a separate legal entity and does not offer any products or services through the Binance.com website. The FCA notice has no direct impact on the services offered on Binance.com. Our relationship with our users has not changed.
It remains to be seen how long the local users can feel safe.