The cryptocurrency market has shrugged off news that the UK’s financial watchdog has banned Binance, one of the world’s largest Bitcoin exchanges, from operating in the country.
The Financial Conduct Authority has ordered Binance Markets to remove all advertisements and financial promotions by Wednesday, June 30.
In one of the most significant moves by a regulator to date, the Financial Conduct Authority said the company should not conduct any regulated activities in Britain without prior approval.
Binance, founded by Canadian-Chinese developer Changpeng Zhao, is now being asked to make clear on its website and social media platforms that it is no longer allowed to operate in the UK.
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Despite the ban, Bitcoin surged more than 5% on Monday to $3,517, although it is still lower than it was at the start of the month after China’s latest crackdown on Bitcoin miners.
The broader cryptocurrency market also gained ground, with Ethereum, the world’s second largest cryptocurrency, up 10 percent as average transaction fees on the coin fell to their lowest since December 2020.
according to site CoinGecko, the broad cryptocurrency space is up about 8 percent to $1.43 trillion Monday morning.
It comes amid a crackdown on the cryptocurrency sector with rising cases of money laundering and fraud globally. It also comes just days after the Japanese financial regulator issued a warning to consumers against Binance.
US and German regulators have also raised concerns about the company’s activities in the past.
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Binance is facing problems
Since the beginning of this year, crypto-related companies must register with the UK Financial Supervisory Authority before doing business in the UK. However, most companies have been granted temporary registration until July.
Earlier this month, the watchdog said only five companies had registered, and the majority had yet to comply.
Binance said on Twitter: “Binance Markets does not offer any products or services via the Binance.com website. BML was acquired by Binance Group in May 2020. It has yet to launch its UK business or use its regulatory permissions from the UK Financial Supervisory Authority.
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Binance Group is currently headquartered in the Cayman Islands, while Binance Markets Limited is a subsidiary based in London.
A spokesperson for the UK’s Financial Conduct Authority said: “Too many crypto-asset firms do not meet the criteria required under the money laundering regulations.” This led to an unprecedented number of companies withdrawing their applications.
He added, “The action taken on Binance Markets Limited has been under consideration for some time. Among the companies evaluated, more than 90 percent withdrew their applications after the intervention of the British Financial Conduct Authority.