FCA (Financial Conduct Authority) is the regulating body in the UK, and when it gives a financial institution a warning, you know things are about to heat up. Perhaps, that’s about to happen for those who have been following Binance, keeping their digital coins on it, or have been using it for selling and purchasing digital assets.
FCA says Binance does not have a regulated presence in the region, and thus any activities that the exchange is performing are unregulated. Keep in mind that the regulator has not called the exchange or its activities illegal. When you hear the word unregulated, you can translate it to “less secure.”
Binance did take some steps to appear legal in the country by setting up Binance Markets Limited on UK land. However, FCA is not buying it, and it continues to call all the activities of the exchange unregulated. It is true and important to mention at this point that Binance has not obtained any form of regulation or authorization in the UK to offer its services.
As things stand, Binance has a week to bring its act together. It either has to respond with words or through action to placate the infuriating giant that FCA is right now.
However, there’s something settling that’s quite unsettling here for you and other users of Binance. The exchange has not shown any serious concerns with regard to the warning. The officials at the largest crypto exchange in the world believe that their operations will not experience any interruption because they are not based in the UK.
The laws, which have been raised as a huge concern by FCA, do not directly apply to Binance. The latter has reassured its users from the UK that they can continue to take advantage of its services unperturbed.
Despite the reassurance and nonchalant attitude from Binance is not going to be enough for its millions of users who put their trust in its services each day. It’s a centralized operation and regulation only guarantees the safety of its users and investors.
The concerns of FCA are not unnecessary when you consider the threats that continue to lurk in the digital world, especially the online world of digital currencies. If the regulatory body is serious about consumers’ interests, it will get some favor from them eventually.
Such a shift in sympathies from the users will not benefit Binance in any way, and so the crypto exchange has to find a way to be out of this situation as soon as possible and with as few bruising marks as possible.
Perhaps, you should also wait a few days before you use Binance for storing your digital coins or any other related matters.