Hey guys it's time for something really big just happened. The uk finance regulator has just declared war on binance, and this is completely unprecedented. The uk authorities already banned finance from operating regulated services in the uk earlier this summer. They then made a further announcement confirming the binance does not have the required authorization to continue operating, but binance, essentially stuck two fingers up at the regulators in response.

According to the fca, binance refused to provide any details of what the overall binance structure globally looks like where the parent company is based, where their hq is, and they apparently refused to comply with a bunch of other requests as well. They didn't put forward any people to be vetted to become an fca approved person for the company and then binance pulled out of the process of registering their uk entity called finance markets limited with the fca. As the regulations say, this should have so binance essentially told the sca to go and do one. This is really incredible, but here is what happened next, the fca got pretty mad, and just now the chair of the financial conduct authority in the uk gave a speech at the cambridge international symposium on economic crime and in this speech he declared all-out war on finance.

With very direct threats and laid out how they plan to attack binance, but he did it in true classic british gentlemanly style. The threats and attacks were thinly veiled and were delivered with extreme politeness and the funniest thing is: he didn't even name binance once in his speech, but let me show you exactly what he said why it is absolutely about binance and why this is really serious. The speech is a little long, so i'm not going to read out what word if you want to see the whole speech. Unfortunately, there isn't a video, but i'm going to link the transcript of the speech in the description below, so you can go check it out.

So, first up charles randall, that's the chair of the fca started, talking about how the internet evolved to set the scene, and he said people used to think of the internet as a free space outside the law impossible to regulate. And while there's no doubt that it has enabled businesses to innovate and grow in ways that serve us well, their awesome power must be matched with responsibility. As we live more and more of our lives online. We can't allow online businesses to operate in ways.

We wouldn't tolerate with any other business. The tide of regulation is turning all over the world, and online platforms should expect a future where regulation addresses the significant risks they pose in the same way as other businesses, same risk, same regulation. So pretty big start, but nothing really binance specific. Yet he then talks a bit about online scams and how google seems to be the only company out of the big online tech once that is doing something about it.

He even specifically names facebook, microsoft, twitter and tech. Talk saying they need to do a lot more and it's not surprising. Platforms like tik, tok and twitter are full of influences, promoting the latest scam token, because those people are being paid or are part of the scan themselves. It is disgusting and i actually agree with them.

This really needs to change. Just go and watch a few recent coffee, zilla videos. If you want to see how insane this whole industry has become, charles randle actually highlighted kim kardashian directly in the speech for promoting ethereum max, clearly something that she got some kind of compensation for doing and clearly something that is a little bit edgy. That token has the all too familiar pump and dump child that you can see over here, where the masses are drawn in very quick to pump up the price, while the people who created it and the people who are promoting it, get to cash in.

According to the fca, just in the uk alone, 2.3 million people own crypto tokens and 14 of them went into debt to buy those tokens. This is a pretty frightening statistic, given that 99 of the crypto tokens currently out, there have absolutely no purpose, and most of them just seem to be out there to scam people. So the speech has laid out some positions but not really talked about binance yeah. Don't worry it is coming here is what the chair said.

Halfway through the speech, the fca currently has a limited role in registering uk-based crypto asset exchanges for anti-money laundering purposes. Exchanges can be used to launder the proceeds of crime and we must contribute to the global effort to address financial crime by demanding that businesses with the uk presence meet to the necessary standards. While some of the businesses which have applied to us have shown evidence of adequate systems and controls, many others fell well short of acceptable standards and many have withdrawn their applications as we have scrutinized them. The state of those firms, ignoring the requirement to register with us or which have moved offshore to avoid registration, could be even worse.

So binance has been publicly reprimanded by the fca for not meeting fca standards then withdrew their application and they are particularly known as the big exchange that has a very opaque offshore setup. So here we're getting a little bit. Warmer sounds like a very british way of getting started with some of real direct binance bashing right there. Let's keep on reading where digital tokens are used to constitute or represent investments that we already regulate like shares and bonds.

We will use our existing powers in the same way as for investments that are not tokenized. That means they're going to be investigating these types of assets in the same way as they do investing brokerages. In 2019, we set out guidance to clarify our approach to transferable securities of this kind and where other activities regulate to reference digital tokens, we will pursue our consumer protection objective in limiting the harm. That's why? Last year we banned the sale of crypto derivatives to retail customers and which company offered those crypto based derivatives of public traded securities.

You guessed it. It was binance. Now charles randall then said that the fda did not have a general remit from parliament to regulate the issue of promotional speculative tokens and then he said: should we a very direct, rhetorical question there? He then said it's difficult for regulators around the world to stand by and watch people, sometimes very vulnerable people putting their financial features in jeopardy, based on disinformation and fear of missing out, but here's a paragraph where it gets a lot more serious. One thing is clear because of the decentralized way in which these speculative tokens are created, any effective system of regulation would require a business seeking registration or authorization with the fca to bring itself firmly within our reach, with people and resources that we could access in order To supervise and enforce our requirements, you can see how this is a very direct dig at what binance has been doing.

Let's keep reading, we are not going to award fca registration or authorization to businesses, which won't explain basic issues such as who is responsible for key functions or how they are organized. That will be token regulation in the worst sense, and here we are getting into a very direct dig at binance after what happened just a few weeks ago, this is clearly talking about how binance flipped the bird at the fca and then the fca chairman said this Action against businesses which choose not to bring themselves within the reach of an effective national regulator, needs to be international with regulators across the world, working together to limit the harm. I o seo has recently published reports on how to educate consumers about the risks of crypto and considerations for regulating crypto exchanges, and i hope this is the start of a consistent collaborative effort. Now the ioco is the international organization of securities commissions, so the threat here is being taken up a big notch.

The chair of the fca in the uk is as good as saying that they are now actively working with regulators and governments around the world to build a global framework for smacking down crypto exchanges that choose not to comply with regulations. And, given that we've already seen, canada, uk eu japan and singapore dispense very public smackdowns to finance with the issue being discussed in the us as well, i have a feeling there will be a few countries interested in working together on this now earlier this summer. The fca said that, although binance is banned, they can't really do much about them operating because well they can't really block the international chain of websites and apps. And in the speech mr randall said this, it will take a great deal of careful thought to craft a regulatory regime which will be effective in the decentralized world of digital tokens, and it's clear that legislators need to consider three issues: how to make it harder for Digital tokens to be used for financial crime, how to support a useful innovation and the extent to which consumers should be free to buy unregulated, purely speculative tokens and to take the responsibility for their decisions to do so.

This is pretty much exactly what i've been talking about for months. I am so glad that he is saying this, although he's putting it in a much more politically correct way. In the meantime, it appears to me that there are two cases where regulators should have the powers to take action to reduce the potential harm to consumers from purely speculative tokens, not least to ensure that trust and overall technology isn't destroyed by bad actors in this space. So he's basically saying the exact same thing he's confirming the obvious problem: a lot of impressionable people, many of them young, are buying into all of these scam tokens, thinking that they are investing their money and expecting higher returns when, in actual fact, the vast overwhelming majority Of all of these tokens, they're on binance, smart chain on ethereum and other places, the vast majority of them are scams and pointless experiments, and it is the job of the regulator to protect people from bad actors.

As the chair of fca is saying, the wild west way in which crypto currently works is not a good thing, because it just encourages those bad behaviors. It's just a place for people to be parted with their money. It is actually really bad for crypto. In the long term, too, the negative reputation, the negative connotations that are being built are not going to help with public perception, with adoption or with people using these things as forms of investment or currency exchange.

So here we go. Ladies and gentlemen, the fca has come out and said that they are going to fight and they are going to bring all of their mates from other countries to the fight too rick where'd, you get a hand grenade. I don't know if you found this useful. I would really appreciate if you could smash the like button for the youtube algorithm.

Thank you so much for watching. I really really appreciate it and, as always i'll see you guys later, you.