The FCA regulator has banned Binance Markets’ regulated activities and warned against the entire Binance Group. The company said that its part of Binance Markets, which it acquired in 2020, does not yet use its regulatory powers, so the decision of the regulator will not affect its services. Trading in cryptocurrencies in Britain is not regulated, but trading in cryptocurrency-related financial derivatives cannot be done without the consent of the regulator.
The regulator announced earlier this month that many companies that trade in cryptocurrencies do not comply with British anti-money laundering and anti-terrorist financing rules. As of May 12, the office allowed the registration of five companies. Another 90 companies had only a temporary registration, which allows them to operate even when the regulator is evaluating the company’s procedures.
Bloomberg reported last month that Binance was of interest to representatives of the US Department of Justice and the IRS, which deal with money laundering and tax offenses. The German Financial Supervisory Authority (BaFin) warned in April that the cryptocurrency exchange could be fined if it offered digital tokens without a prospectus. The Japanese regulator said on Friday that Binance was operating illegally in the country.
But some rich people view cryptocurrencies differently. For example, the third richest Mexican, Ricardo Salinas, said his bank would be the first in Mexico to receive the lesser-known cryptocurrency bitcoin, Reuters reported. Forbes estimates the value of Salinas’ assets at $ 15.8 billion (CZK 337.5 billion). Last year, Salinas announced that he had invested a tenth of his assets in bitcoins, and said on Sunday that all investors should study cryptocurrencies and their future. “Of course, I recommend using bitcoins. My bank and I are working to make it the first bank in Mexico to accept bitcoin,” he wrote on Twitter. Salinas is the owner of the financial institution Banco Azteca.
Bitcoins and other virtual currencies
There are many virtual currencies. One of the oldest and currently the most popular are the so-called bitcoins. They were created in 2009, but have enjoyed greater popularity in recent years. This currency was designed so that it could not be influenced by any government or central bank.
Cyber coins are “minting” a network of computers with specialized software programmed to release new coins at a steady but declining pace. The number of coins in circulation is expected to reach 21 million in the end, which is to be around 2140.