2021-06-28 14:01:18
Hey Folks,
There are a lot of you (especially those based in the UK) that have been asking me about this Binance Ban.
This was on the back of this announcement by the FCA:
https://www.fca.org.uk/news/news-stories/consumer-warning-binance-markets-limited-and-binance-group
As you can see from the announcement, this is in relation to Binance Markets Limited. For those that don't know, this is Binance's UK entity which was set up in order to eventually roll out Binance UK.
https://find-and-update.company-information.service.gov.uk/company/09510915
Binance UK was meant to go live some time last year. However, that seems to have fallen by the wayside.
https://www.coindesk.com/binances-uk-exchange-institutions-regulated-crypto
So, there is a lot of ambiguity in these statements. Decrypt even asked the FCA to clarify exactly what they meant about it. The spokesman said "UK consumers can continue to interact with Binance Group".
Binance Group is of course the company which controls the main exchange on Binance.com.
Of course, all we have at the current moment is just conjecture and speculation. As we have often seen in the crypto markets, FUD spreads faster than wildfire doused with jet fuel.
It will be interesting to see what Binance says about this when they make an official announcement.
If you were to ask my opinion on it, it is likely that they could restrict trading on leveraged products in the UK (Futures etc). This is because of the fact that crypto derivatives ban that they implemented last year.
https://www.bloomberg.com/news/articles/2020-10-06/u-k-s-fca-bans-sale-of-crypto-derivatives-to-retail-consumers-kfxultf4
Leveraged trading products are risky in general and I assume that that FCA is more concerned about these than spot crypto - again speculation.
However, having said all this, I know first-hand how over burdensome some of these regulations in the UK are. For example, some of you may have seen that we started rolling out London Underground ads:
https://twitter.com/coinbureau/status/1409167483781722114
You will also have noticed the size of that risk disclaimer at the bottom. That is because despite us explicitly not offering any sort of investment advice (nor taking any funds whatsoever), we were instructed to put that disclaimer. Even education of crypto is seen as risky it seems
So yeah, that's just my read of the situation currently. I will be updating you guys when more information comes to light. I am also looking at doing a complete video on exchange regulation in the next week or so.
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