This archive report was first published on 28 June 2021.
On June 28, 2021, the UK's Financial Conduct Authority (FCA) announced a significant blow to the cryptocurrency industry, banning Binance Markets Limited from regulated trading in Britain.
The ban, which affects options and futures contracts related to bets on price movements of cryptocurrencies, is a result of the FCA's growing concerns over the lack of oversight in the industry.
However, purchases of cryptocurrency units, such as bitcoin and dogecoin, can continue since they are not regarded as financial products and are therefore not regulated.
Binance Group, which is one of the world's two biggest crypto exchanges, has responded to the ban, stating that it would have 'no direct impact' on their operations.
Founded in China four years ago, Binance has been at the center of regulatory scrutiny in recent months, with many central banks and regulators expressing concerns over the industry's lack of oversight.
Laith Khalaf, a financial analyst at stockbroker AJ Bell, noted that tighter regulation was a consequence of the cryptocurrency boom, stating, 'Cryptocurrency is a victim of its own success because regulators across the globe are increasingly turning their beady eyes on crypto assets — and companies like Binance that offer crypto services to consumers.'
