Binance, Cryptocurrency exchange, United Kingdom, Bitcoin, Financial Conduct Authority, Finance !? Is This The End Of Binance? | Cheeky Crypto News Today
In the uk and uh, this is something that’s. I think a few people have been a bit inquisitive over so we’re gon na get into this and uh see exactly what’s, going on then jump over to the fca and uh, get it from their mouths as well. So here we also just have an article, a brief article on this one so i’m going to quickly go over this for you um, but basically june the 27th um. So this was uh today or yesterday um. So, basically, you know the fca uh. This is the finance uh financial conduct authority ordered cryptocurrency exchange finance to stop undertaking any regulated activity in the country saying the firm lacked authorization, so the crypto exchange would not be allowed to undertake any regulated activities without prior written consent from the sca and the watchdog Said in a statement dated saturday um no further entity in the binance group holds any form of uk authorization, registration or license to conduct regulate regulated activity in the uk. The fca statement said so: britain’s move comes at a time when binance one of the world’s largest cryptocurrency exchanges is under scrutiny by regulators in other countries, including the united states and germany. We also have this going on in canada as well um, so basically there’s. Quite a bit of a full frontal attack from many different angles here, um, you know kind of globally against finance for many different reasons, but uh and we’re gon na really focus in on what’s going here on here in the uk and again this does translate across Over into germany as well um, so you know i imagine there’s going to be a whole host of other countries.
That will start you know adding uh, adding the pressure, but basically officials from the u.s justice department and internal revenue services who probe money laundering and tax offenses have sought information from individuals with insight into the company’s business. Um bloomberg reported this last month, um in april. Germany’S financial regulator, um b.a, finn um, you know barfin um warned did you know how to say it better than i did? Are you chris yeah it’s baffin i’ve worked like i come from a regulatory background, so i can add quite a bit to this one yeah. So bathroom as i like to refer to as many people warned, the exchange uh risked uh being fined of basically offering digital tokens without investor uh perspective, so um let’s see okay. So we really focus this in on on the uk angle here. So obviously you can see this article being written up so what’s. The first thing that chris wants to do here is obviously jump on over to the fca right. Obviously, chris is saying that he has a uh. You know a bit of a background when it comes to regulations and all that kind of good stuff. So let’s let’s see what it is from the horse’s mouth right, so consumer warning, um on finance markets limited and the group by a finance group. I should say so and finance markets limited is not permitted to undertake any regulated activity in the uk. The firm is part of a wider group by nance group due to the imposition of requirements by the fca finance markets.
Limited is not currently permitted to undertake any regulated activities without prior written consent from the fca. No other entity in the binance group holds any form of uk authorization, regular registration or license to conduct regulated activity in the uk. The binance group appeared uh appear to be offering uk customers a range of products and services um via a website by nance.com. So again, so there you’re going to have their their statement and obviously there’s a little bit more. Not really, you know in line with this, but we’ll go through it just quickly anyway, so investing cryptocurrencies generally um be wary of adverts online on social media, all the kind of usual stuff that we often talk about here, um in terms of cryptocurrency that are high Risk don’t overextend yourselves and be prepared to lose all your money, all the kind of usual stuff that these government entities do communicate, that’s what’s kind of being listed here they go and talk about the financial ombudsman services, uh financial, uh service compensation schemes, uh. If things go wrong, you will not be able to have access to those so it’s important that you are aware of all that kind of stuff. But i think most people in the uk understand that the government are distancing themselves to a point and they’re trying to scare you away from it and then, obviously here you have uh what’s going on with this regulated activity. I’M. Not sure if you want to add any more to that chris yeah, just just a couple of things.
So obviously the the fca statement here is is saying regulated activities right. So this isn’t everything and that sort of will lead us into the next article, which is just around what a security is and uh non security because ultimately that’s what this really boils down to and um yeah. Do you want to sort of have a look at that page nick and sorry go through that, so we can just add the end kind of a summary of what our thoughts are absolutely so here we gain um, fca we’ll, just uh hop on over here and Basically, what they’re, talking about in terms of a regulated activity is the regulated tokens. So these are just in the same way that we talked about the sec over in the states, so securities right and so regulated tokens in the uk fire managed by the fca. The financial conduct authority are security, tokens and e money, tokens, okay and obviously e money. Tokens are they’re, not your standard, cryptocurrencies or anything like that. They’Re they’re totally a different entity and but we’re going to really just focus in on what binance are basically potentially offering in uh in their markets, right, which is ultimately security based tokens and they haven’t got uh authorization to do this. So when they’re talking about regulated tokens, they are talking about security tokens in the case of binance, and so these are tokens that uh amount to a specific uh or specified investment um and again.
This is something that i think many people are now very familiar with. Given the ripple situation, it’s all to do with basically a common entity and basically promising returns uh on the investment. So if you were to basically purchase a security token, you would be purchasing a contract um to basically make sure that the company that uh you know is marketing that particular um security. Token is going to be the one that’s, basically going to be returning. You uh having a return on your investment, basically, and so ultimately, security tokens is what we’re kind of talking about here when it comes to binance and the uk um financial conduct authority. Now, what they’re not talking about are the unregulated tokens, and these are any tokens that are not security, tokens or not e money, tokens and uh, basically, unregulated tokens, okay, that’s what they are, and this category includes utility tokens. I think those are people who have lots of different debates over what a utility token is. You know xrp some people call it a utility token, for example um over here in the uk. We actually call it an exchange. Token uh such as this one here right, and so in the sake of this. Basically, the category includes utility tokens which can be redeemed for access of a specific product or service, and that is typically using um a distributed leisure technology platform um. The category uh also includes tokens such as bitcoin litecoin and equivalence.
Uh also referred to as crypto currencies, crypto coins of payment tokens. These tokens are usually decentralized and designed to have preliminary use as a medium of exchange and over here in the uk. Sometimes we refer to those as exchange tokens, and this is exactly where um the fca have put. Xrp xrp is an exchange token here in the uk um and they do not provide the types of rights or access. You know provided by a security or utility token, but are used as a means of exchange for or for investment purposes right, so ultimately um many of the cryptocurrencies that i think the majority of the people that watch our show. Um will be basically these unregulated tokens, and but there will be little pockets here and there where people will actually own these regulated tokens and um. You know these are the regulated tokens that basically, the financial conduct authority are trying to basically stop by now it’s offering to the uk without first of all getting that authorization. This is something again you see with the sec over in the states as well. Anything you want to add on on any of that chris or summarize it so i kind of feel like the the main points to to be made here are it’s the security tokens that are the issue potentially for finance when they, when the fca talk about regulated Activity or sales or services, so i think what you really need to do, and – and this is just my opinion – is you need to understand what what it is that you hold on finance right? If you’ve got tokens on binance or coins on finance, you need to understand whether they’re a security token or a utility or exchange token here in the uk um.
So you know you should be able to do that. There should be a breakdown of of you know. The the list, i guess, of what is a security and what isn’t uh through the fca, but you know you can pretty much work this out for yourself. I know it’s a bit of a gray area uh when you you look at xrp as an example, because over in the uk that’s an exchange token, whereas uh you know, it’s been looked or i guess, uh. The lawsuit is to determine whether it’s a security in the u.s, so there is a difference depending on where you are so, if you’re in the u.s, for example, and it’s class of security, then uh that might not be the same in the uk. So i think that’s one point to to raise – and i guess where is where is this going to end um for for binance, where you know where do we see this one move in what direction so for me, one of two things will will happen. Other binance will apply to to get a license to to offer securities in the uk or they won’t if they don’t, then they’re going to have to wind winding some of the services that they provide to people in the uk. So this is why i think it’s important to look at whether you’ve got you know. Uh securities held on on finance i’m, pretty sure that you’ll have time uh to sell them.
If you do or take them off the exchange and move them to to. Like a hardware wallet, for example, um, but overall, is it anything to worry about? I don’t think so. Um one thing i would say is that you, you need to obviously understand what it is that you hold and then two um go and and look at the fca website, rather than some of the the fuddy style news articles that are going around and some of The stuff on on social media – because i i can see people saying you know finance – are stopping crypto currency like in the uk and um all this sort of stuff so and and that isn’t really strictly true, fantastic guys. Hopefully, you found this useful, informative, maybe entertaining at times. If you did then definitely do go ahead and hit that like button, we both appreciate that and, of course, if you’re new go ahead and subscribe, and by subscribing, you will be kept up to date with everything we do here with.