As the crypto market continued to see unprecedented dips in value over the previous few weeks, the UK market regulator decided to ban the world’s largest crypto exchange, Binance, from operating in the UK. It has been reported that the FCA states, “Binance is not permitted to undertake any regulated activity in the UK”. It has also been made clear that the company must add this status to its website by the end of June, making the message loud and clear on their website and applications.
Though Binance users from the UK are devastated to hear that they can no longer deposit or withdraw funds through Binance, the FCA has taken the decision to protect Britain’s from losing their money to the dipping prices of cryptocurrencies. A spokesperson from the FCA informed news authorities that ‘The action taken today on Binance has been in train for some time”.
It was also stated by Khalaf, “The idea that policymakers are simply going to allow a decentralized shadow payments system to emerge without any regulatory oversight is fantastical, and if the use of crypto assets becomes more widespread, we can expect beefed-up regulation to follow suit.”
However, it was revealed that the ban on Binance was limited as there are still several online websites and platforms offering UK residents crypto trading. In fact, BML (Binance Market Limited) will still be operating online as it is a separate entity from Binance.com.
The Chinese authorities have put in quite some effort to ban crypto trading. These efforts have been ongoing for the last month. In recent news, the Chinese authorities have ordered crypto miners to cease all activities in several regions. They have also urged financial institutions to stop accepting crypto as a form of payment.
The ongoing strictness and scrutiny have led the crypto market to see a further fall in value. Bitcoin, which was valued at $65,0000 in April this year, is now being sold at $34,000 estimated. This has led investors to question whether they should continue investing in crypto or not.
However, market experts are optimistic that cryptos, especially Bitcoin, will soon see a spike in value. In many opinions, the subsequent downfall of cryptocurrencies is something that has happened before as well, and the odds of crypto values going back to normal are favorable.
Another famous opinion amongst analysts is that as Bitcoin and other cryptocurrencies fall in price and start to bounce back, it’s the perfect time to invest in them. This is because cryptocurrencies have been following the same pattern for a decade now. Not once has Bitcoin seen a fall in value that it hasn’t recovered from.
However, only time will tell where crypto values shall go, especially considering the FCA ban on Binance and China’s ban on crypto trading altogether.