Partial ban, warnings: what’s going on on the Binance crypto platform?

Binance, the world’s largest cryptocurrency buying and trading platform, is under a partial ban in the UK, and it’s not the only country where it is having problems.

Binance, partially banned in the UK? The cryptocurrency exchange and services platform is going through a disconcerting period. On the one hand, Binance has just been dismissed by the English financial regulators on a certain part of its activity. On the other hand, the platform launched with great noise into the NFT market, which was said to have been slowing down since the record sales in March.

The platform, one of the largest in the world for cryptocurrencies and an institution for amateurs, should not be too affected by the UK’s decision. But the problems seem to be piling up: the United States looked into Binance’s case a few weeks ago, and Japan accused the platform of acting without the approval of financial authorities. What’s going on with Binance?

Binance // Source: Binance

A partial ban in England

Binance is not just any cryptocurrency exchange – it is considered the largest by volume in the world. The announcement on Saturday June 26 by the Financial Conduct Authority (FCA), the UK’s financial regulator, that Binance was ” not allowed »To carry out part of its activities in the country has had a very important impact in the world of cryptocurrencies.

The ban relates in particular to Binance Market Limited, a branch of the group, and does not relate to the purchase of cryptocurrency: the sale and exchange of cryptocurrency is not regulated in the United Kingdom. The FCA’s decision will therefore not have a direct impact on buyers of the platform. But, concretely, Binance now has a ban on selling cryptocurrency derivatives, such as ” options or futures Which are assets regulated by the FCA.

We are aware that the UK regulator FCA has issued an opinion on Binance Market Limited (BML) », Commented the platform on Twitter shortly after the announcement of the English regulatory authority. ” Binance bought BML in May 2020, and has yet to launch its offering in the UK », Also notes the company. ” The FCA’s decision has no impact on Binance and the services we offer. Our relationship with our customers has not changed. We are in contact with the FCA teams and we take our obligations very seriously. Binance keeps abreast of news and changes in the law “.

United States, Japan, Canada, Germany ..

The UK is not alone in studying how Binance works. In the United States, the Department of Justice and the tax authorities are also investigating its operation because they fear that the cryptocurrency exchange – which has indicated to fully collaborate with them – could be used by malicious actors to launder money. money and tax evasion.

The platform is also concerned in Japan, where on Friday, June 25, the Financial Services Agency of Japan (JFSA) issued a warning to the platform, which it accuses of offering its cryptocurrency exchange services in the country without having received permission. On the same day, Binance also announced that it was withdrawing its services from the province of Ontario, Canada. The news came a few months after a statement from the local regulator, which accused the cryptocurrency exchange of failing to comply with the law.

Finally, in Germany, Binance is also scrutinized by BaFin, the financial regulator. The platform is criticized for its activities on share tokens (a product that allows you to buy fractions of shares), which could ” having infringed »Certain tax regulations.

The NFT platform

Among these rather gloomy news, Binance can be happy at least on one point: the launch of its sales platform dedicated to NFTs. The platform seems to be falling back to a safe point, as it goes through a stormy period in several countries. After opening with great fanfare on June 24, 2021, Binance NFT now hosts several hundred NFTs, mystery boxes, and has made partnerships with several creators.

Binance’s NFT Selling Platform // Source: Binance NFT

The NFT, these non-fungible tokens, revolutionized the online art market at the start of the year, and in particular with the record sale of a work by the artist Beeple for 69 million euros in March. Since then, the market has run out of steam but NFTs are far from dead. Positioning itself in a niche market invested by enthusiasts can be a good bet for Binance.

Above all, Binance’s NFT platform differs from its better-known competitors by one very important point: the blockchain. Until now, the vast majority of NFTs were listed in the Ethereum blockain, and purchases were made in ETH. The fact that Binance has chosen to host the site and the NFTs on its own blockchain, the Binance Chain, and that it is necessary to pay in BUSD (Binance US Dollars) is a very strong indicator of Binance’s ambitions. Now see how the group will come out of the investigations and restrictions that target it.

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