Invest
The world’s biggest bitcoin exchange is becoming a big target for regulators
Invest
The world’s biggest bitcoin exchange is becoming a big target for regulators
Binance is making headlines, and not for good reasons.
The world’s biggest bitcoin exchange is becoming a big target for regulators
Binance is one of the world’s biggest crypto traders, but the list of controversies around it has exploded in recent months.
According to some estimates, Binance is said to account for as much as 25 per cent of the bitcoin futures market and around $1.7 billion in daily transaction volume as of June 2021.
However, with that popularity has come with greater scrutiny from regulators.
Last month, Britain’s Financial Conduct Authority moved to warn Binance from conducting business via its UK affiliate business.
Binance Markets Ltd “must not, without the prior written consent of the FCA, carry out any regulated activities... with immediate effect,” the regulator warned.
Responding to the warning via Twitter, Binance emphasised that Binance Markets Ld is a separate legal entity to their exchange business and that the FCA UK notice has no direct impact on its ability to deliver exchange services via its website or app.
“We take a collaborative approach in working with regulators, and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space,” they said.
The crypto exchange is also facing similar headwinds from regulators in Japan, Ontario, the Cayman Islands and Thailand.
According to Arcane Research, “The growing regulatory scrutiny towards Binance could potentially impose a risk on the market, and it should be followed closely.”
They noted that “the development around Binance is evolving day by day, but the regulatory scrutiny could, in turn, lead to a declining dominance by Binance, depending on the outcome of this backlash”.
They compared Binance’s current situation to the scrutiny faced by BitMEX back when it reigned as the crypto world’s most popular exchange, noting the latter’s rapid decline from a 36 per cent slice of the market at its peak to 6.5 per cent share today.
An associate professor of finance at Macquarie University, Sean Foley, told nestegg earlier this month, “Regulators globally are really starting to understand what’s happening in this space and get their head around, you know, not just bitcoin and ethereum, but decentralised finance and yield farming and, you know, Uni Swap and automated market makers and all sorts of stuff like.”
“There’s no need to say ‘well look, it’s not that we can’t regulate it’ because there are intersections between the fiat on-ramps and regular people,” he said.
About the author
About the author
Bitcoin
Aussie bitcoin mining startup smashes pre-seed funding record
An Aussie bitcoin mining startup has raised $2.6 million in pre-seed funding, setting an Australian record. Read more
Bitcoin
Blockchain tipped to ‘irreversibly’ shake up global payments system
Bitcoin and other cryptocurrencies are reaching the point of critical mass, an expert has said. Read more
Bitcoin
Does bitcoin now fit the accounting definition of cash?
With bitcoin being declared legal tender in El Salvador and more generally gaining acceptance as a transaction currency across the world, does this cryptocurrency now meet the definition of cash, as ...Read more
Bitcoin
Bitcoin’s death cross descent may just be the beginning
Some bitcoin backers are jumping at the chance to gain from recent losses in the cryptocurrency market. Read more
Bitcoin
Goldman Sachs says bitcoin could hit US$100k despite recent losses
Inflation could drive the price of bitcoin to new heights. Read more
Bitcoin
Bitcoin records worst monthly performance since May
The world’s most popular cryptocurrency has ended a tumultuous 2021 on a sour note. Read more
Bitcoin
Panic-sellers offer bitcoin backers a Christmas bargain
Bitcoin’s latest losses could bolster the long-term gains of true crypto believers. Read more
Bitcoin
Aussies are already paying their bills in bitcoin
Getting paid and paying bills in bitcoin may just be a matter of time. Read more
Bitcoin
Aussie bitcoin mining startup smashes pre-seed funding record
An Aussie bitcoin mining startup has raised $2.6 million in pre-seed funding, setting an Australian record. Read more
Bitcoin
Blockchain tipped to ‘irreversibly’ shake up global payments system
Bitcoin and other cryptocurrencies are reaching the point of critical mass, an expert has said. Read more
Bitcoin
Does bitcoin now fit the accounting definition of cash?
With bitcoin being declared legal tender in El Salvador and more generally gaining acceptance as a transaction currency across the world, does this cryptocurrency now meet the definition of cash, as ...Read more
Bitcoin
Bitcoin’s death cross descent may just be the beginning
Some bitcoin backers are jumping at the chance to gain from recent losses in the cryptocurrency market. Read more
Bitcoin
Goldman Sachs says bitcoin could hit US$100k despite recent losses
Inflation could drive the price of bitcoin to new heights. Read more
Bitcoin
Bitcoin records worst monthly performance since May
The world’s most popular cryptocurrency has ended a tumultuous 2021 on a sour note. Read more
Bitcoin
Panic-sellers offer bitcoin backers a Christmas bargain
Bitcoin’s latest losses could bolster the long-term gains of true crypto believers. Read more
Bitcoin
Aussies are already paying their bills in bitcoin
Getting paid and paying bills in bitcoin may just be a matter of time. Read more