The trading platform Binance will be reined in, at least in the UK. For example, the UK financial regulator FCA is to completely ban trading in regulatory assets such as derivatives, such as knock out certificates. Cryptocurrencies could also be affected. This was announced by the authority in a communication from the weekend.
BNB price rises by more than 6%
In the announcement, the Financial Conduct Authority states that Binance’s UK subsidiary Binance Markets Ltd “may no longer engage in any regulated activities with immediate effect without the prior written consent of the FCA.” A statement of the crypto exchange remains so far.
However, this news did not affect the price of the in-house cryptocurrency BNB. Today, the virtual currency rose by more than 6%. Nevertheless, the demand of the British authority could bring even harsher consequences for the platform. Finally, in its notice, it prohibits trading in any assets “that we would count as securities.“
Binance must turn on warning to customers
In addition, Binance is given a deadline of 30 June to issue an official warning to its website and social channels “Binance Markets Limited is not authorised to operate any regulated activity in the UK.“
Confirmation of compliance with the imposed regulations is expected by July 2. This also includes the collection of customer information and all communication that must be provided on demand.
Binance was also the central crypto exchange at the time, to allow more anonymity and data protection in front of legislators. With the newly imposed rules, this time is likely to come to an end. Even now, more and more providers require at least an official verification of their users.
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