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LONDON: A growing number of crypto asset companies are dropping attempts to register with the UK financial regulator as global scrutiny of the rapidly growing sector intensifies.
The Financial Conduct Authority (FCA) on Friday banned Binance, one of the world’s largest crypto exchanges, from carrying out any regulated activity in Britain, as regulators around the world step up oversight of the crypto industry .
Data on registrations shows the number of those abandoned jumped by a quarter in less than a month, an FCA spokesperson said on Monday, adding that Binance withdrew its request in mid- May, without giving further details.
Crypto-related companies have since January had to register with the FCA, which monitors compliance with laws designed to prevent money laundering and terrorist financing, before doing business.
Only six companies have signed up, with dozens more still being assessed but not yet rated ‘fit and appropriate’. About 64 withdrew their request, the spokesperson said, up from 51 in early June.
A Binance spokesperson declined to comment, but said it is working closely with regulators and law enforcement “to strengthen the security and sustainability of the industry while providing the best services and protection to our users “.
Regulatory concerns about cryptocurrencies such as bitcoin include their potential for use in money laundering and other illegal activities, as well as the potential risks to consumers.
“DECENTRALIZED” Binance, led by Canadian Changpeng Zhao, is one of the most important players in the crypto world. It offers services ranging from digital token trading to derivatives, as well as emerging technologies such as tokenized versions of stocks.
Yet its regulatory structure is opaque.
Its spokesperson declined to comment on the location of its holding company, calling Binance “decentralized.”
Binance has been targeted by regulators around the world in recent months.
The Japanese regulator said Friday that Binance was operating illegally in the country, a notice posted on the Financial Services Agency of Japan website showed.
“The FCA is aligning itself with other major regulators, particularly in the United States and Asia,” said Alpay Soytrk, chief compliance officer at Spectrum Markets, a securitized derivatives trading platform.
Bitcoin, which has fallen around 18% in the past 13 days as China tightens restrictions on the cryptocurrency sector, ignored the FCA move and last rose 0.3% at $ 34,767.
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LONDON: A growing number of crypto asset companies are dropping attempts to register with the UK financial regulator as global scrutiny of the rapidly growing sector intensifies.
The Financial Conduct Authority (FCA) on Friday banned Binance, one of the world’s largest crypto exchanges, from carrying out any regulated activity in Britain, as regulators around the world step up oversight of the crypto industry .
Data on registrations shows the number of those abandoned jumped by a quarter in less than a month, an FCA spokesperson said on Monday, adding that Binance withdrew its request in mid- May, without giving further details.
Crypto-related companies have since January had to register with the FCA, which monitors compliance with laws designed to prevent money laundering and terrorist financing, before doing business.
Only six companies have signed up, with dozens more still being assessed but not yet rated ‘fit and appropriate’. About 64 withdrew their request, the spokesperson said, up from 51 in early June.
A Binance spokesperson declined to comment, but said it is working closely with regulators and law enforcement “to strengthen the security and sustainability of the industry while providing the best services and protection to our users “.
Regulatory concerns about cryptocurrencies such as bitcoin include their potential for use in money laundering and other illegal activities, as well as the potential risks to consumers.
“DECENTRALIZED” Binance, led by Canadian Changpeng Zhao, is one of the most important players in the crypto world. It offers services ranging from digital token trading to derivatives, as well as emerging technologies such as tokenized versions of stocks.
Yet its regulatory structure is opaque.
Its spokesperson declined to comment on the location of its holding company, calling Binance “decentralized.”
Binance has been targeted by regulators around the world in recent months.
The Japanese regulator said Friday that Binance was operating illegally in the country, a notice posted on the Financial Services Agency of Japan website showed.
“The FCA is aligning itself with other major regulators, particularly in the United States and Asia,” said Alpay Soytrk, chief compliance officer at Spectrum Markets, a securitized derivatives trading platform.
Bitcoin, which has fallen around 18% in the past 13 days as China tightens restrictions on the cryptocurrency sector, ignored the FCA move and last rose 0.3% at $ 34,767.
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