It has not even been complete two weeks but the result of UK FCA’s crackdown on Binance has become apparent. It was not long ago when the Financial Conduct Authority (FCA) of the United Kingdom had launched a probe against Binance.
As per the FCA, the probe was against Binance’s cryptocurrency operations in the country. The regulatory authority had announced that until the regulatory investigation is complete, Binance would not be able to offer crypto-related services in the UK.
It is to be kept in mind that Binance is facing scrutiny not only from the UK but from the United States and in other countries as well. This is causing Binance exchange to face significant losses in terms of its market capitalization, worth, and reputation.
Right after the UK FCA made an announcement against Binance’s operations, Barclays Bank hit another hammer on the exchange. It went ahead and barred its users from sending/receiving payments from Binance. This dealt another low blow to Binance and its operations, which the exchange is still coping with.
However, the worst part is now coming up as the recent events have indeed taken their toll on Binance’s market reputation. Now, the exchange has started losing ground in the United Kingdom, and other exchanges have earned the opportunity to prove their worth to users.
Now, the rival cryptocurrency exchanges are benefiting from the recent banning of Binance. The rival cryptocurrency exchanges have now started reporting that they are experiencing a spike in terms of new user registrations.
Previously, Binance had filed an application to register itself as a cryptocurrency asset firm that was licensed to operate in the UK. However, the exchange withdrew its license application back in May of 2021. It was later revealed that the exchange did it because it was unable to meet the requirements for anti-money laundering regulations.
Technically, the exchange allowed to operate and provide cryptocurrency services to the citizens of the United Kingdom. However, the FCA demanded Binance exchange put a note on its website, confirming that it is not a licensed exchange in the UK to operate.
Later on, Binance revealed that the FCA had only banned the activities of its UK entity, Binance Markets Limited. Binance confirmed that BML is a completely different entity and Binance.com would continue operating as normal.
Although Binance has made all the efforts to carry the damage yet customers have started moving towards other platforms. At present, exchanges such as Bitstamp, Kraken, Gemini, and even Coinbase are benefiting from Binance’s loss.
Bitstamp has reported that ever since the banning of Binance’s cryptocurrency operations, its customer base has 138%.
Apart from Bitstamp, Kraken, Gemini, and Coinbase have all reported that the user base on their platforms in the United Kingdom region has increased.