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Banned from setting up a UK specific exchange and not allowed to undertake regulated activities such as lending. This in no way affects the existing Binance exc

Banned from setting up a UK specific exchange and not allowed to undertake regulated activities such as lending. This in no way affects the existing Binance exchange or the ability of UK users to use Binance.

lugged 5y ago
I pulled my funds from binance, writings on the wall.
- wpietri 5y ago
  Yup. Regulators have given cryptocurrency companies a surprisingly long leash. But at least in the US, that's changing for sure.
- Animats 5y ago
  Well, as large amounts of funds are pulled from Binance, we will find out if they've been stealing. A good regulatory step for the US would be to require that it can't be harder to withdraw than to deposit. Any ID requirements have to be completed before depositing, not withdrawing. And all withdrawals must be processed by T+2. Same rules as regular brokers.
  - wyldfire 5y ago
    > And all withdrawals must be processed by T+2. I've never seen this notation before. Does it refer to blocks, hours, or (gasp!) days?
    - jcranmer 5y ago
      Given the typical settlement time of financial systems, I would assume it's days.
    - Animats 5y ago
      Trade day plus 2 business days.[1] This is the standard in the securities industry for most transaction settlements. Not paying on time is called a "fail". There are penalties. For US stockbrokers, FINRA enforces them. In the real world, a broker failing to pay out cash on time to multiple customers is a Big Deal. Alerts come up on Bloomberg terminals. It's headline news. Institutional investors stop sending trades to that broker and start demanding collateral. The SEC, FINRA, NASDAQ, NYSE, the Fed, and other become involved. See the collapse of Bear Sterns. [1] https://en.wikipedia.org/wiki/T%2B2 https://en.wikipedia.org/wiki/T%2B2
      - randomhodler84 5y ago
        Completely dumb and enabling of high finance scams. Instant settlement means nobody can play games. It fixes this. Embrace this.
        Animats 5y ago
        Some delay is useful in catching scams. See [1]. But not much delay. 2 days is a useful compromise. [1] https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery
        randomhodler84 5y ago
        You have to catch them before settlement — that is the only logical and safe way. Any delay just lets the supposed holder mess about with stealing from one to pay another. If you act like every action is permanent, irrevocable… you conduct your life with care. It’s a radical deviation from the fun and games occurring today.
        xeromal 5y ago
        Not sure what the sentence means
  - randomhodler84 5y ago
    The reality is they don’t need to. Pegged tokens are the ultimate way to fractional reserve. See tether. Plenty of binance pegged tokens to handle any loss. Best thing is when binance has to buy themselves whole, they just just burn the tokens on their chain. Genius. Not your keys, not your coins. Also that t+2 thing is just allowing shenanigans. When Rh forces the industry into instant settlement next year (hope!!) we will see who is truly been playing funny money. Looking at you citadel.
- bombcar 5y ago
  When you pull funds how do you transfer them out? As fiat or Bitcoin or tether or?
  - arthurcolle 5y ago
    Stablecoin would work, BTC or ETH would work. It's not that hard.
  - sbierwagen 5y ago
    If the UK makes it hard to trade bitcoin, you can also guess that the value of bitcoin denominated in GBP will go down dramatically. You probably don't want to be holding tether in that case.
    - jimmydorry 5y ago
      In my experience, it's typically been the opposite. Countries with harsher capital controls / make it harder to use Bitcoin, attract a premium in the purchase / sale of Bitcoin. South Africa for example has very strict capital controls, hence the price to buy or sell Bitcoin is higher than elsewhere. The catch is that you can't easily move fiat out of the South African economy, which makes abritrage, to take advantage of this imbalance, impossible.
      - sbierwagen 5y ago
        The UK does not have South African capital controls. Unless it's for proceeds of criminal activities, in which case you don't really want to enter every transaction in a global immutable ledger!
    - celticninja 5y ago
      It hasn't done that and it is unlikely that they will. There are UK based exchanges, the issue here is with binance specifically and not cryptocurrencies in general.
mgamache 5y ago
"The U.K.’s Financial Conduct Authority (FCA) has ordered crypto exchange Binance to stop undertaking any regulated activity in the country. But since the exchange pulled its application for the FCA's crypto-assets register, it will be unable to offer services that previously counted as unregulated — such as spot trading — either." https://www.theblockcrypto.com/post/109766/uk-fca-bans-crypto-exchange-binance https://www.theblockcrypto.com/post/109766/uk-fca-bans-crypt...
- nebulous1 5y ago
  Looks like they actually altered that part. It now reads. "Since Binance pulled its application, that means the exchange can no longer provide services that were previously unregistered either, such as spot trading" It feels like The Block isn't entirely sure what Binance can or can't do at the moment.
  - spottybanana 5y ago
    > It feels like The Block isn't entirely sure what Binance can or can't do at the moment. I'm sure also Binance and the FCA aren't sure about that. The regulatory uncertainty in this space is huge. Even after this statement it is very unclear if there are any effective sanctions FCA can enforce on Binance if they continue doing whatever they are doing. Or they might just stop advertising, and start some stealth advertising campaigns after an year os so.
agilob 5y ago
but does that mean Binance will stop reporting accounts with trades for over £5k to HMRC?

lugged 5y ago

I pulled my funds from binance, writings on the wall.

wpietri 5y ago
Yup. Regulators have given cryptocurrency companies a surprisingly long leash. But at least in the US, that's changing for sure.
Animats 5y ago
Well, as large amounts of funds are pulled from Binance, we will find out if they've been stealing. A good regulatory step for the US would be to require that it can't be harder to withdraw than to deposit. Any ID requirements have to be completed before depositing, not withdrawing. And all withdrawals must be processed by T+2. Same rules as regular brokers.
- wyldfire 5y ago
  > And all withdrawals must be processed by T+2. I've never seen this notation before. Does it refer to blocks, hours, or (gasp!) days?
  - jcranmer 5y ago
    Given the typical settlement time of financial systems, I would assume it's days.
  - Animats 5y ago
    Trade day plus 2 business days.[1] This is the standard in the securities industry for most transaction settlements. Not paying on time is called a "fail". There are penalties. For US stockbrokers, FINRA enforces them. In the real world, a broker failing to pay out cash on time to multiple customers is a Big Deal. Alerts come up on Bloomberg terminals. It's headline news. Institutional investors stop sending trades to that broker and start demanding collateral. The SEC, FINRA, NASDAQ, NYSE, the Fed, and other become involved. See the collapse of Bear Sterns. [1] https://en.wikipedia.org/wiki/T%2B2 https://en.wikipedia.org/wiki/T%2B2
    - randomhodler84 5y ago
      Completely dumb and enabling of high finance scams. Instant settlement means nobody can play games. It fixes this. Embrace this.
      - Animats 5y ago
        Some delay is useful in catching scams. See [1]. But not much delay. 2 days is a useful compromise. [1] https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery https://en.wikipedia.org/wiki/Bangladesh_Bank_robbery
        randomhodler84 5y ago
        You have to catch them before settlement — that is the only logical and safe way. Any delay just lets the supposed holder mess about with stealing from one to pay another. If you act like every action is permanent, irrevocable… you conduct your life with care. It’s a radical deviation from the fun and games occurring today.
        xeromal 5y ago
        Not sure what the sentence means
- randomhodler84 5y ago
  The reality is they don’t need to. Pegged tokens are the ultimate way to fractional reserve. See tether. Plenty of binance pegged tokens to handle any loss. Best thing is when binance has to buy themselves whole, they just just burn the tokens on their chain. Genius. Not your keys, not your coins. Also that t+2 thing is just allowing shenanigans. When Rh forces the industry into instant settlement next year (hope!!) we will see who is truly been playing funny money. Looking at you citadel.
bombcar 5y ago
When you pull funds how do you transfer them out? As fiat or Bitcoin or tether or?
- arthurcolle 5y ago
  Stablecoin would work, BTC or ETH would work. It's not that hard.
- sbierwagen 5y ago
  If the UK makes it hard to trade bitcoin, you can also guess that the value of bitcoin denominated in GBP will go down dramatically. You probably don't want to be holding tether in that case.
  - jimmydorry 5y ago
    In my experience, it's typically been the opposite. Countries with harsher capital controls / make it harder to use Bitcoin, attract a premium in the purchase / sale of Bitcoin. South Africa for example has very strict capital controls, hence the price to buy or sell Bitcoin is higher than elsewhere. The catch is that you can't easily move fiat out of the South African economy, which makes abritrage, to take advantage of this imbalance, impossible.
    - sbierwagen 5y ago
      The UK does not have South African capital controls. Unless it's for proceeds of criminal activities, in which case you don't really want to enter every transaction in a global immutable ledger!
  - celticninja 5y ago
    It hasn't done that and it is unlikely that they will. There are UK based exchanges, the issue here is with binance specifically and not cryptocurrencies in general.

mgamache 5y ago

"The U.K.’s Financial Conduct Authority (FCA) has ordered crypto exchange Binance to stop undertaking any regulated activity in the country. But since the exchange pulled its application for the FCA's crypto-assets register, it will be unable to offer services that previously counted as unregulated — such as spot trading — either." https://www.theblockcrypto.com/post/109766/uk-fca-bans-crypto-exchange-binance https://www.theblockcrypto.com/post/109766/uk-fca-bans-crypt...

nebulous1 5y ago
Looks like they actually altered that part. It now reads. "Since Binance pulled its application, that means the exchange can no longer provide services that were previously unregistered either, such as spot trading" It feels like The Block isn't entirely sure what Binance can or can't do at the moment.
- spottybanana 5y ago
  > It feels like The Block isn't entirely sure what Binance can or can't do at the moment. I'm sure also Binance and the FCA aren't sure about that. The regulatory uncertainty in this space is huge. Even after this statement it is very unclear if there are any effective sanctions FCA can enforce on Binance if they continue doing whatever they are doing. Or they might just stop advertising, and start some stealth advertising campaigns after an year os so.

agilob 5y ago

but does that mean Binance will stop reporting accounts with trades for over £5k to HMRC?