BigONE’s View: What does it mean to stop the operations of Binance in the UK?
The British Financial Market Conduct Authority (FCA) issued a warning to Binance Exchange that because Binance Exchange does not hold any form of authorization from the UK, registration, or permit, it can not carry out unregulated activities in the UK. FCA requires that before June 30, they delete all advertisements and financial promotions, and must clearly indicate on its website, social media platform, and all other communication methods that it is no longer approved to operate in the UK, and shall not carry out any operational activities in the UK without prior approval.
At the same time, the FCA also said that exchanges registered in the Cayman Islands must confirm that they have complied with the regulatory agency's requirements before Wednesday night.
This should be the most severe warning issued by the United Kingdom against cryptocurrency exchanges in history. BigONE, also an exchange, is very concerned about this news from the FCA. Looking at the reasons behind this phenomenon, BigONE is more concerned about the purpose of the FCA. And how this, in turn, will affect investors. First of all, BigONE, as a cryptocurrency exchange, agrees with the actions of the FCA. The so-called “no rules” are played out. If the cryptocurrency industry wants to achieve more stable development, it will inevitably be inseparable from the support of various countries and regions’ regulatory policies. The cleaner the environment, the stricter the supervision, the more transparent the transaction process, the broader the space for the development of cryptocurrency. BigONE can also become more stable, go farther and be more practical with our operations.
Why did the FCA issue a warning to Binance?
1. The cryptocurrency market needs supervision: The FCA’s actions can ensure that any individuals/institutions that provide cryptocurrency investment products and services in the UK conduct them in a safe and regulated environment while keeping pace with the regulatory policies of China, the United States, and other Asian countries.
Companies dealing in cryptocurrencies must now register with the FCA and follow anti-money laundering regulations before doing business in the UK, as of the beginning of this year. As of now, some exchanges are permitted to conduct “provisional registration” before July.
2. Demand in the cryptocurrency market surges
The cryptocurrency market will witness significant growth, which retail investors will lead. Due to the soaring price of cryptocurrencies led by Bitcoin, the number of retail investors has increased significantly in the past year. According to CMC research statistics, about 2.3 million adults in the UK hold crypto assets, which is higher than last year’s 1.9 million. The average monthly trading volume of the BigONE exchange alone exceeds 14 billion U.S. dollars. Based on huge trading operations like ours, FCA’s regulatory policy is quite reasonable.
3. High rate of fraud
BigONE believes that regulatory agencies in various countries and regions have always paid close attention to the cryptocurrency industry due to concerns about illegal activities and investor asset protection. They are concerned that fraudulent transactions in the cryptocurrency market will cause investors to lose money.
At the same time, the global number of money laundering and fraud cases is increasing. As a cryptocurrency exchange, criminals will likely use it to launder money. BigONE has always maintained a strict compliance policy, rejecting illegal activities such as position contract transactions and MLM currency listings. It has successfully collaborated with the police in combating illegal and criminal activities, assisting the country and investors in recouping their losses.
What is the impact of FCA’s actions on investors?
Although the FCA has restricted Binance’s services in the United Kingdom, it is still possible to visit Binance in other jurisdictions to speculate on cryptocurrency price trends.
BigONE believes that cooperating with regulatory agencies and taking a collaborative approach will be the exchange’s main development direction in the future because we always place a high value on whether our business is compliant. BigONE, as an exchange, has an obligation to comply with business and services. BigONE will always actively monitor changing cryptocurrency policies, rules, and legal requirements. In conclusion, FCA’s actions mean that the introduction of regulatory policies has no direct impact on cryptocurrency transactions, and the relationship between exchanges and investors has not changed.
BigONE is a global cryptocurrency exchange that provides a platform for trading various cryptocurrencies. It was founded in 2017 and registered in the Netherlands. The group operates in Russia, Brazil, Vietnam, Seychelles, Singapore, Japan, and Indonesia, providing marketing, investment, and blockchain technology research & development.