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| Bitcoin soars as Britain bans Binance |
The cryptocurrency market has dismissed the news that the UK's financial regulator has banned one of the world's largest bitcoin exchanges from operating in the country.
The Financial Conduct Authority has directed Binance Markets to remove all financial advertisements and promotions by Wednesday, June 30.
One of the most important steps regulators have taken so far is that the Financial Conduct Authority has said the company should not engage in regulated activities in the UK without prior approval.
Binance, founded by Canadian-Chinese developer Changpeng Zhao, must make clear on its website and social media platforms that it will no longer allow operations in the UK.
Despite the ban, bitcoin still rose more than 5% to $3,517 on Monday, although it was still lower than it was earlier this month after China's latest crackdown on bitcoin miners.
The broader cryptocurrency market grew, with Ethereum, the world's second largest cryptocurrency, up 10% as the average token transaction fee fell to its lowest level since December 2020.
According to data from CoinGecko on Monday morning, the massive cryptocurrency space rose about 8% to $1.43 trillion.
With the increase in cases of money laundering and fraud around the world, the cryptocurrency industry has been hit. Just a few days ago, the Japanese financial regulator warned consumers about Binance.
US and German regulators have also expressed concerns about the company's activities in the past.
Binance is having problems
Starting earlier this year, crypto-related companies will have to register with the UK financial regulator before they can start doing business in the UK. However, most of the companies were pre-registered before July.
Earlier this month, the regulator announced that only five companies had registered and that most had yet to comply.
Binance said on Twitter: “Binance Markets does not offer any products or services through Binance.com. BML was acquired by Binance Group in May 2020. It has not yet started operations in the UK and is using its regulatory license from the UK. The financial regulator.
The Binance Group is currently headquartered in the Cayman Islands and Binance Markets Limited is a subsidiary based in London.
A UK Financial Conduct Authority spokesperson said: “Many crypto asset firms fail to meet the standards required by the money laundering regulations.” This has led to an unprecedented number of companies withdrawing their applications.
He added: “The lawsuit against Binance Markets Limited has been under scrutiny for some time, and of the companies that were evaluated, more than 90% of the companies have withdrawn from their candidacy for FCA intervention.