British mainstream media criticized for misleading coverage, “Binance Ban” is just FUD

The UK crypto community is extremely confused and chaotic after the country’s financial regulator, the Financial Conduct Authority (FCA), warned of the Binance exchange’s activities. Specifically, the FCA published its report “Consumer Alerts About Binance Markets Limited and Binance Group” over the weekend. And rumors circulate all the time, as well as FUD …

Binance has been “touched” by UK regulator

The above report repeats the comments made in an October 2020 press release on the ban on offering crypto derivative products to retail investors. The difference this time around, however, is that the announcement mentions Binance.

Warning from the FCA to Binance

Part of the report said:

“To remedy this damage, the FCA has introduced regulations that prohibit the sale, marketing and distribution of derivative products (including contracts for difference – CFDs, rights, etc.), options and futures) as well as transferable cryptocurrencies to all retail customers. related ETNs that are not controlled by companies operating in or out of the UK. “

And shortly after this report was published, a wave of suspicions spreading alleging the FCA had banned Binance from operating in the UK. However, let’s go side by side to clear this rumor.

First, the FCA states that they do not regulate the cryptocurrency, Bitcoin or Ether mentioned in the report only as an example. Second, the FCA has confirmed that it is responsible for certain crypto derivative products. For this reason, companies trading in crypto derivative products must be authorized to advertise and sell these products in the UK.

The report said:

“Although we do not regulate cryptocurrencies like Bitcoin or Ether, we reserve the right to regulate certain crypto derivatives (such as futures, contracts for difference and options) as well as cryptocurrencies that we classify as securities …”

In addition, one of the causes of misunderstanding is that big news sites like Bloomberg, BBC keep posting articles with sensational and easily misleading headlines. For example the BBC article entitled “Binance: Financial Supervisory Authority FCA Bans Cryptocurrency Exchanges”. There are many users who just want to read the article title without reading the details of the content then confidently believe that the FCA has banned Binance in the UK. This story can only be summed up in one sentence: “Because of you, with her, on both sides”.

Meanwhile, the “ban” only affects Binance Markets Limited (BML), a London-based company that is a separate legal entity from the Binance Group. BML is responsible for Binance UK, another version of Binance in the UK that was due to hit the market last year. According to reports, the FCA is against official licensing of the BML. This led BML to withdraw its application last month.

According to a press release from October 2020, the FCA originally banned trading in crypto derivatives. So nothing has changed about that.

In response to the above rumors, Binance released a series of tweets clarifying their position. Accordingly, Binance confirmed that BML does not provide any services through Binance.com.

Source: Binance / Twitter

“The announcement by the UK FCA has no direct impact on the services offered on http://Binance.com. Our relationship with users has not changed. “

The company eloquently concluded that it takes regulation very seriously.

Veronica

According to the AZCoin News

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