Binance To Comply With UK New Rules Despite Initial Departure
In a recent report, the giant cryptocurrency platform, Binance Exchange, has announced the launch of its new web page that offers its crypto-related services and products to customers in the United Kingdom. In addition, the spokesperson of the firm stated that Binance is ready to comply with the new rules implemented by the UK Financial Promotion Regime to offer its products to locals.
According to the report, Binance announced that its UK users can now access its services through its web page. Also, the firm has a list of extensive programs such as spot trading, crypto lending, deposits and withdrawals of fiat and digital currencies, ICO platforms, etc., which are well-regulated by UK regulators.
In the announcement, Binance revealed that users in the UK can no longer have access to its Binance Feed, reference websites, gift cards, and especially referral bonuses which the regulator targets for cancellation. Furthermore, the crypto firm stated in June that its branch in the UK had canceled its application for FCA’s endorsement. Consequently, FCA’s database, Binance operations in the UK is illegal.
Binance To Comply With FCA
Additionally, the crypto platform revealed in its recent announcement that it has no intention to register with the regulator, however, it has partnered with Rebuildingsociety.com, a firm registered under the FCA, to render its products and services via the S21 gateway regulations.
According to the report, Binance’s recent actions in the UK are allegedly prompted by the recent plans of the UK regulators to impose restrictions on how crypto firms can promote their businesses. In the newly introduced regulations, UK regulators mandate crypto platforms to clearly state the risk warnings associated with their programs. In addition, they forbid referral and registration bonuses. Firms that refuse to comply with the new regulations are liable to face harsh punishments including jail terms and huge fines. However, Binance recently announced intentions to work under implemented crypto rules in the UK.
Due to the increasing regulations from the UK authorities, several crypto firms have exited the country. In addition, some prominent firms like NiceHash, ByBit, and PayPal have revealed their intentions to limit their services to UK citizens.
Binance Saw Declines In Spots And Derivatives Markets
Meanwhile, another news report revealed that Binance has been recording a significant decline in its market dominance, especially in the last seven months. Many crypto speculators have linked the recent dip to the current regulations irregularities in the US crypto markets which deeply impacted Binance’s promotion and trading performance in the region, hence prompting the sharp decline.
According to the report, a statistic from a crypto analytic firm revealed that in January 2023, the Binance exchange commands a lion’s share in the spot market with 55.2%. However, since then, the firm has recorded a significant decrease as it registered 38.5% and 34.4% in August and September 2023, respectively. Apart from spot markets, Binance has been performing badly in the derivative markets too. The data showed that in January, the crypto firm possessed more than 62% of the derivatives markets, however, it recorded 53.5% and 51.5% dominance in the derivative markets.
Crypto experts commented that the ambiguous crypto regulations are not the sole factor causing these declines, claiming Binance’s recent decision to end its zero-fee trading promotions played a major role too.
Binance Exits Some Regions
In sync with its numerous challenges, the Binance exchange has been busy exiting some crypto markets around the globe. For instance, in September, the crypto platform announced its complete exit of the Russian crypto markets. According to the report, Binance sold out its Russian branch to CommEx Exchange, a new firm in the industry.
The sale and exit hugely impacted Binance as Russian investors represented about 7% of its total users.
Furthermore, the report stated that the crypto platform updated the structure of its fee which is in alignment with the VIP level of the user. For instance, the platform now charges a 0.1% fee on margin and spot trades. Meanwhile, Binance’s rivals have been reportedly capitalizing on the new development as Binance’s initial spot trading volume moves to other crypto exchanges like DigiFinex, Bybit, and HTX. In addition, Bybit, Bitget, and OKX are reportedly experiencing an increase in their derivatives market dominance.
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