• Wed. Jun 7th, 2023

FCA’s Warning to Binance Doesn’t Affect the Exchange, Says Its Owners

Jul 2, 2021

The world of crypto is always surrounded by news of regulation. As soon as a piece of news appears regarding the regulation, banning, prohibition, or crackdown of cryptocurrencies and their exchanges, a lot of digital coins lose their value.

This game of volatility continues to affect the digital currency market, and at the moment, the weather doesn’t seem to be getting better in the crypto realm any time sooner. Binance is the largest exchange for cryptocurrency buying and selling on the planet. It’s formidable size and presence could not hold FCA from issuing it a warning regarding its operations in the UK.

FCA, the Financial Conduct Authority, is the prominent regulator of financial institutions in the UK. The warning from the regulating body says that any activities that Binance conducts within the UK will not be considered regulated. Of course, when the requirement for any exchange that’s operating in the UK is to register with FCA, then the one not registered will be considered unregulated.

Do you have to worry that your dear digital coins saved on the exchange are not safe anymore? Is the company going down and you should cut ties with it as soon as possible? Probably not, considering the response that has come from Binance.

It is a little worrying, but also quite reassuring. As per Binance, if the company is not based in the UK, which is the case here, then there is no need for it to obtain a regulated status. If you are someone from the UK and have been using Binance for buying or selling crypto coins, you can continue to do so without any worries.

You do need to know that Binance does have some official presence in the UK. It is not as though the exchange is relying entirely on its online operations to work in the UK. Binance Markets Limited is located in the UK, but FCA hasn’t waved the flag for it to start its “regulated” operations in the region.

The only point of concern for you if you are a UK resident is that the regulating authority has not limited its declaration to Binance Markets Limited. In fact, it has shown concern over the fact that Binance isn’t even a registered or legally authorized entity in the UK.

The exchange now has to make sure it complies with the UK financial laws, at least the ones that have infuriated the regulating giant. If that does not happen, the future for UK residents, who have stakes in Binance, will be very uncertain.

If you have cryptocurrencies stored on Binance or you plan to use it, you might want to hold your horses only for a couple of more weeks. In two weeks’ time, things will be much clearer and certain for you as a crypto investor.

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