Hmmm… I might have a use for the almighty pink card after all…
Monzo has a lot to answer for!
TSB to ban crypto for all customers because of fraud:
This may not be good
Headline seems misleading to me. As far as I can tell from FCA website they’ve not banned Binance entirely. They’ve told them they can’t undertake any regulated activity in the UK. Running a crypto exchange isn’t a regulated activity.
Aren’t the crypto accounts subject to AML and KYC , would that make them regulated?
All the news sites are saying they’re banned, they can’t all be wrong. Here the FT:
They can when they all copy and paste the news without actually checking the details with the FCA on what actually it means.
I blame the FCA as much as the news reporting. It’s all very irresponsible.
The FCA needs regulating they are such a pain
The monzo community accountability and oversight board is taking applications.
But it was pretty misleading.
Well, that escalated quickly
That said, I personally don’t find it entirely reassuring that Binance’s response amounts to “This thing happened, but it’s to a different part of our business, and our entirely unregulated and unaccountable part of our business is still ready and waiting to take your money.”
One could argue that Binance are playing semantics here, and that the core problem with their business being risky as f*** hasn’t actually been resolved.
Neither FCA nor Binance has actually disclosed what the problematic activity is/was. FCA has said that “majority” of firms are currently not compliant… The lack of clarity is not super helpful, so I wonder what the strategy is.
Pretty much a non story which the media has picked up on, and then reported incorrectly. They like to have a bash when they can. I reckon the journalists were so happy to report something else negative, that they didn’t really read the press release from the FCA and then actually digest it
Not saying Binance is all sweet smelling of roses, just doesn’t help when the media get lazy in some instances.
I’m just a consumer getting information from the internet, and don’t have any specialist knowledge. But for what it’s worth…
No - I don’t think that constitutes FCA providing authorisation to undertake regulated activity. FCA describe their role as supervisory with respect to AML/KYC compliance by crypto firms. I think authorisation vs supervision is a meaningful distinction in FCA world. UK-based crypto firms are required to register with FCA for supervision of KYC/AML compliance. I suppose lack of compliance on this might lead to an outright ban of the Binance Markets (UK entity which I gather would have been linked to as yet unlaunched binance.co.uk). However, FCA don’t seem to be pursuing this angle (at least not publicly) since there is no mention of this in the FCA consumer warning.
The FCA public warning on this occasion seems to be related to Binance offering crypto derivatives which is a regulated activity. I assume they can stop Binance Markets (the UK entity) from offering these. What’s not clear to me through is if FCA actually has any power to prevent the wider Binance Group (a non-UK entity) from providing derivatives to UK users via Binance.com. Binance seem to say no (based on their tweet), but I get the impression FCA expect Binance to stop offering derivatives to UK consumers via Binance.com
Will be interesting what happens on Wednesday.
I want to know who is actually putting their faith in anything prefixed with safe especially a stable coin. The whole safe thing is joke that’s got out of hand.
Binance have added a statement to Binance UK
The Financial Conduct Authority in the United Kingdom has asked us to issue the following statement. In the interests of clarity, we are happy to do so.
Binance.com is a platform providing various products and services to global customers. Some of these products and services are regulated outside the UK, while others are not. Binance Markets Limited is a UK based company which has not yet carried on any business. BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITIES IN THE UK.
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. (No other entity related to Binance.com, other than Binance Markets Limited, holds any form of UK authorisation, registration or license to conduct regulated activity in the UK). Such authorisation, registration or license is not required for unregulated activities.
As a result, the imposition of the FCA’s requirements does not change any arrangements with users that use the products and services provided through www.binance.com. Accordingly, as requested by the FCA, Binance Markets Limited will obtain the FCA’s prior consent before launching its business and carrying on any regulated activities.
But no statement added to Binance.com or the Binance app
I wonder if this thread should be closed in favour of the more general cryptocurrency chat thread (or vice versa)?
I’m never sure which one to post in
Perhaps rename whichever remains to “Bitcoin and Cryptocurrency Chat” to ensure people searching for either will find it.