Binance is facing strong headwinds around the world. So it certainly needs some positive news. The FCA has now announced that the crypto exchange meets all the requirements. And will be allowed to trade in the UK again.
On August 25, the UK Financial Conduct Authority (FCA) announced that Binance has met the requirements placed on it and is thus allowed to trade again. It has been tough for the crypto exchange over the past few months. It has been under regulatory pressure around the world. As recently as June 25, 2021, Binance was banned by the FCA from offering certain services in the UK. To this end, it warned all consumers to exercise caution with unregulated crypto exchanges. True, cryptocurrency trading is not regulated in the Kingdom. But for that, the authority regulates and monitors activities of companies that offer derivatives on Bitcoin or Ethereum, for example. The FCA made the following comments on its corporate website at the time:
Binance Markets Limited is not permitted to carry on regulated activities in the UK. This company is part of a larger group (Binance Group). Due to FCA requirements, Binance Markets Limited is not currently permitted to carry on regulated activities without the prior written consent of the FCA. No other Binance Group company holds any form of UK authorisation, registration or licence to carry on regulated activities in the UK.
Binance chief satisfied with FCA decision
With the decision made by the UK’s FCA on August 25, the crypto exchange is once again facing a little less regulatory pressure. CEO Changpeng “CZ” Zhao should also be relieved about this. For he tweeted on the same day:
“If the crypto exchange landscape could be compared to the ‘Wild West’ a few years ago, a time where cryptocurrency traders sometimes found themselves outside the law, it looks less wild today. These days, law enforcers are far more active and increasingly restricting the trading activities of crypto exchanges.
“25 August 2021 update. On 25 June 2021, the FCA imposed requirements on Binance Markets Limited. The firm complied with all aspects of the requirements“https://t.co/ryque3nHFb-
CZ Binance (@cz_binance) August 25, 2021
The FCA re-permitting Binance Markets Limited comes in a string of news that shows Binance’s effort to reconcile with the world’s governments. After Binance was founded, it was still possible to trade earlier with just a password and an email on file. Nas regulatory pressure has been mounting lately, crypto exchanges have been adapting, introducing a general ID requirement for customers and tightening identity verification processes on August 20. As a result, crypto exchanges around the world are increasingly bowing to and cooperating with law enforcement.