[ad_1]
Binance, one of the world’s largest cryptocurrency exchanges, has come under fire by the UK’s financial regulator in a growing trend by governments to try and curb activity in the crypto space.
In a notice dated 26 June, the Financial Conduct Authority (FCA) issued a warning that Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. The notice also gave a broader warning for UK residents about investing in cryptocurrencies generally.
The Financial Conduct Authority is the conduct regulator for nearly 60,000 financial services firms and financial markets in the UK. In the note, the regulator advises it doesn’t regulate cryptoassets like Bitcoin or Ether directly, but has instead focused on certain cryptoasset derivatives — such as futures contracts, contracts for difference and options, as well as those cryptoassets it would consider ‘securities’.
In Australia, Binance is operated by InvestbyBit Pty Ltd (Binance Australia), a digital currency exchange registered with AUSTRAC, the government body responsible for preventing, detecting and responding to criminal abuse of the financial system to protect the community from serious and organised crime.
This comes at a time when the Australian Serious Financial Crime Taskforce (SFCT) has aimed its sights on the burgeoning market in cryptocurrency transactions as well, using data matching to track various forms of cybercrime, including the use of cryptocurrency to avoid taxation or launder the proceeds of crime.
The move by the UK mirrors a similar move by the ATO in May, when it issued a clear warning to investors in cryptocurrency ahead of the impending tax requirements this year. The warning indicates a shift by the ATO from a good-faith, educative approach to cryptoasset tax obligations adopted through the 2020 income year, to a more hard-line position following the surge of investor interest in the asset class.
ATO analysis indicates there are more than 600,000 Australian taxpayers who have invested in cryptoassets, following surging interest throughout the pandemic.
Recently the Chinese Government took action against the supply side of cryptocurrencies, with The Sichuan Provincial Development and Reform Commission in lockstep with the Sichuan Energy Bureau issuing a joint notice demanding the closure of 26 suspected cryptocurrency mining projects, using the energy grid to identify the power-needy nature of crypto mining.
This follows the arrest of 1100 individuals suspected of using cryptocurrencies to launder the takings from various internet and telephone scams by China’s Ministry of Public Security.
[ad_2]
