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Binance gets banned by UK regulator

MiddleEuroAsia

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From CNBC:

LONDON – Cryptocurrency exchange Binance has been banned from operating in the U.K. by the country’s markets regulator, in the latest sign of a growing crackdown on the crypto market around the world.
Britain’s Financial Conduct Authority said Saturday that Binance Markets Limited, the U.K. division of Binance, “is not permitted to undertake any regulated activity in the U.K.”

From June 30, the company — which already offers Brits crypto trading through its website — must add a notice in a prominent place in its website and apps showing U.K. users the following text:

BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. (No other entity in the Binance Group holds any form of U.K. authorisation, registration or license to conduct regulated activity in the U.K.).

Binance, the world’s largest crypto exchange by trading volumes, was set to launch its own digital asset marketplace in Britain. However, it was one of several crypto firms that withdrew applications to register with the FCA due to not meeting anti-money laundering requirements.
Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” a spokesperson for the FCA told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.

The FCA spokesperson clarified that the scope of the ban was limited. Though Binance Markets Limited is banned from offering regulated services in Britain, non-registered firms can still interact with U.K. consumers. That means Binance could still offer Brits crypto trading through its website.

A Binance spokesperson told CNBC: “The FCA U.K. notice has no direct impact on the services provided on Binance.com ... Our relationship with our users has not changed.

We take a collaborative approach in working with regulators and we take our compliance obligations very seriously,” the spokesperson added. “We are actively keeping abreast of changing policies, rules and laws in this new space.

The FCA has stated that Binance is not permitted to conduct regulated activities in the U.K.,” Laith Khalaf, financial analyst at AJ Bell, said via email. “Providing access to cryptocurrencies itself is not a regulated activity, but offering derivatives is, which is presumably the activity the FCA is clamping down on.”
The FCA isn’t the only regulator clamping down on the crypto industry, Japan’s Financial Services Agency warned last week that Binance was operating in the country without its permission.

Meanwhile, China has stepped up efforts to stamp out crypto speculation, ordering digital currency miners to cease operations in a number of regions and urging banks and payment firms not to offer crypto-related services.
Increased regulatory scrutiny has weighed on the nascent crypto market. Bitcoin had a solid start to the year, rallying to an all-time high of almost $65,000 in April. But it’s since almost halved in value, trading at $34,783 as of Monday morning.
This isn’t a step change in regulation which is going to knock the crypto craze on the head, but it is part of a growing trend of regulatory intervention in crypto markets,” Khalaf said, referring to the FCA’s restrictions on Binance.
The idea that policy makers are simply going to allow a decentralised shadow payments system to emerge without any regulatory oversight is fantastical, and if the use of cryptoassets becomes more widespread, we can expect beefed-up regulation to follow suit.
 
Add to the fact the Binance has now been shut of from GBP Faster Payments.


If I was with Binance I would just move all assets while you still can. Don't know the full scope of whats going on but Binance seems to be facing issues with regulators.
 
Add to the fact the Binance has now been shut of from GBP Faster Payments.


If I was with Binance I would just move all assets while you still can. Don't know the full scope of whats going on but Binance seems to be facing issues with regulators.
Yeah, it seems like Binance is having a hard time indeed. they already pulled out of Ontario, and I think they will pull out of Canada altogether soon.



Regarding binance assets, offices and the like. No one actually knows where binance is located, when asked cz said that they are just like bitcoin, they exist everywhere, he said and I quote Wherever I sit, is going to be the Binance office. Wherever I need somebody, is going to be the Binance office. So, it seems like most of his emploeeyes are scattered around the world, and his place of operation or the place where he files taxes..etc remains unknown.

It's funny though that the UK still allows plenty of shady EMIs with shady Russian owners (Nothing against russians btw, I Love russsians, the keyword is shady :) ), same with Lithuania. It's weird and strange criteria that they choose to approve or disapprove businesses.
 
Yeah, it seems like Binance is having a hard time indeed. they already pulled out of Ontario, and I think they will pull out of Canada altogether soon.



Regarding binance assets, offices and the like. No one actually knows where binance is located, when asked cz said that they are just like bitcoin, they exist everywhere, he said and I quote Wherever I sit, is going to be the Binance office. Wherever I need somebody, is going to be the Binance office. So, it seems like most of his emploeeyes are scattered around the world, and his place of operation or the place where he files taxes..etc remains unknown.

It's funny though that the UK still allows plenty of shady EMIs with shady Russian owners (Nothing against russians btw, I Love russsians, the keyword is shady :) ), same with Lithuania. It's weird and strange criteria that they choose to approve or disapprove businesses.
if regulator become strict, It will harm them, Nobody pays tax on them.
It is better for government to co-operate with crypto. So they can get tax from crypto earning.
Otherwise It is true “Wherever I sit, is going to be the Binance office. Wherever I need somebody, is going to be the Binance office".
It is like swiss number bank account in your pocket.
 
Yeah something is up with Binance. The point that Binance is under investigation by the DOJ and IRS doesn't bode well for anyone brave enough to deal with them as of today.

I would not want to be CZ right now. Feds maybe building a strong case against Binance as we speak and at some point will issue an arrest warrant for him and asset freeze of Binance. He must know the net is closing on on him. At some point most FI's will dump Binance and Cayman Islands will too.
 
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Yeah something is up with Binance. The point that Binance is under investigation by the DOJ and IRS doesn't bode well for anyone brave enough to deal with them as of today.

I would not want to be CZ right now. Feds maybe building a strong case against Binance as we speak and at some point will issue an arrest warrant for him and asset freeze of Binance. He must know the net is closing on on him. At some point most FI's will dump Binance and Cayman Islands will too.

What is on your opinion could be reason for arrest CZ?
I mean a lot of exchanges are worked fine like a bitstamp, coinbase, kraken etc.
Only bitfinex had a legal problems in past and bitmex ex-CEO arrested.
In what point binance are bad? Just because they biggest exchange?
At least only binance have gratefuls from the goverment for helping in solving cyber crime.
 
What is on your opinion could be reason for arrest CZ?
I mean a lot of exchanges are worked fine like a bitstamp, coinbase, kraken etc.
Only bitfinex had a legal problems in past and bitmex ex-CEO arrested.
In what point binance are bad? Just because they biggest exchange?
At least only binance have gratefuls from the goverment for helping in solving cyber crime.
Highly probable money laundering. Or worse case similar activity to the guy below. DOJ can go after you for offenses committed well before the exchange became as successful as it is today.

plus there was also this news a while back that binance.us used elaborated "Scheme" to evade US bitcoin regulators. It's a fun read from forbes:

Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators​


And Binance's answer? they filed a defamation lawsuit against forbes and then dropped it after three months without any explanation.


CZ is honestly pretty dumb to think that he could get away with stuff like that with the most aggressive tax country on earth. Fed's love s**t like that. they like to tore people and bring them down. Add that to the money laundering charge that you mentioned and tax evasion charges, and yeah, soon enough there would be a red notice issued from Interpol for CZ.

This guy is gonna have a hard time, and If anyone here has any kind of crypto asset on binance, i would suggest moving it asap. trade in any other regulated exchanges like kraken or coinbase (if you live in one of the supported countries).

And a general rule of thumb. Always transfer your assets out of any exchange periodically, it could be biweekly it could be bimonthly, point is, never leave your assets hanging there on any centralized exchange.
 
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And a general rule of thumb. Always transfer your assets out of any exchange periodically, it could be biweekly it could be bimonthly, point is, never leave your assets hanging there on any centralized exchange.

Better to not use any exchange use paper wallet or any wallet which key is known to you.
Not your key not your coin.
You can pay price for exchange criminal activities.

Any financial scandal happen in any corner of the world the innocent one are suffer the most.
Regular and Normal people are pay the price of criminal people.
 
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plus there was also this news a while back that binance.us used elaborated "Scheme" to evade US bitcoin regulators. It's a fun read from forbes:

Leaked ‘Tai Chi’ Document Reveals Binance’s Elaborate Scheme To Evade Bitcoin Regulators​


Yikes eek¤%&

Didn't even know that. Thats operation suicide when it comes to US. It's all starting to make sense why countries are distancing themselves from Binance.
 
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Better to not use any exchange use paper wallet or any wallet which key is known to you.
Not your key not your coin.
You can pay price for exchange criminal activities.

Any financial scandal happen in any corner of the world the innocent one are suffer the most.
Regular and Normal people are pay the price of criminal people.
I agree with you, however if you trade regularly, then it won't make sense to leave your coins in paper/hardware wallet either. Even DEXs are not the most efficient way to trade any crypto, sometimes you have to wait a whole day on a dex to execute an order.

on the other hand centralized exchanges always have liquidity, great trading tools and big user bases and over all it's more user friendly which means it's more convenient to use for trading.

We are still in the very early stages of DEFI, so we still need these centralized exchanges for our trades, but In general, I agree, for regular swap between crypto/crypto or crypto/fiat, I try to use DEXs or P2P online exchanges as much as I could.
 
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It's hard to say at the moment we have to wait for further info but just incase i got my stuff out of binance
One thing is true, their AML is a joke. You can withdraw around 80k USD worth of crypto without any KYC a day and another blatant breach is although they say you can only withdraw fiat to a bank account in your name that's not the case at all. You can withdraw fiat to any account it doesn't have to be in your name lol.
 
It's hard to say at the moment we have to wait for further info but just incase i got my stuff out of binance
One thing is true, their AML is a joke. You can withdraw around 80k USD worth of crypto without any KYC a day and another blatant breach is although they say you can only withdraw fiat to a bank account in your name that's not the case at all. You can withdraw fiat to any account it doesn't have to be in your name lol.

I’m pretty sure that the poor KYC/AML policies and the obvious breach are totally intentional.
 
I believe big part of above could be simple fud.
They could be under investigation of IRS, but why Thai SEC?
Are binance allow stock trading? NO
Are binance registered at Thai? NO

Its better to filter out this things.
What is truth that binance largest crypto exchange in the world and it have precise monitoring from governments, competitors in matter of fuds, etc.


Ability to withdraw to any account actually should controlled by receiver bank. But you cant request withdraw of fiat and put not your name in binance.
If we speak about this breach, IBRK had same problems too. So it's not only binance bad here.
Actually its a problem with AML at receiver banks. Nothing new.
 

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