Cryptocurrency exchange Binance banned from the UK
Binance, one of the most popular and well-known cryptocurrency exchanges, has been banned from the UK.
In another sign of an international crackdown on the cryptocurrency industry, the Financial Conduct Authority (FCA) announced its move against Binance Markets Limited – part of the wider Binance Group – late on Sunday.
‘Binance Markets Limited is not permitted to undertake any regulated activity in the UK,’ the FCA said.
‘Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.’
The FCA said no other part of Binance was allowed to operate in the UK.
Binance was one of the top destinations for cryptocurrency trading and would charge between 0.02% to 0.10% purchase and trading fees making it one of the most affordable options.
Unfortunately for the company, it doesn’t appear there is any way around the ban.
‘No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK,’ the FCA said.
Regulators in various countries have been cracking down on the cryptocurrency industry amid fears over insufficient customer protection and its potential role in money laundering and fraud.
What is Bitcoin?
Bitcoin is perhaps the best known type of cryptocurrency.
It works without a central bank and is usually exchanged from person-to-person when it is sold or exchanged, without anyone working in-between to overlook the transaction.
Some people like the fact that Bitcoin is not controlled by the government or banks.
It was first released in 2009 and its value has fluctuated over the last 12 years.
Only 21 million Bitcoins can ever be created in order to protect the value of the bitcoin system.
Bitcoins can be ‘mined’, which is the process of actually creating bitcoins, or they can be bought using regular currency.
Bitcoins are made or ‘mined’ by computer power on the bitcoin network.