Hey guys it's sasha last week, on friday, 25th of june, the fca uk's finance regulatory body has posted a warning that binance is not permitted to undertake regulated activity in the uk. I saw a lot of people talk about this, but the vast majority of what people said that i saw was quite incorrect. Some said that this doesn't apply to binance and is only relevant for their uk entity that hasn't even launched. Yet others said that this only applies to futures and instruments, because those are the only regulated activities.

A lot of people said that this is all complete, fud. Unfortunately, the truth is very serious and in this video i will explain exactly what this binance ban means, what it means for binance and what it means for any customers who choose to use binance in the uk now binance actually tweeted about this and said the fca Uk notice has no direct impact on the services provided on binance.com, based on what the fca have said and the uk legislation, i am afraid it looks like binance - is plain wrong. Just my personal opinion, i am not a lawyer, of course, so do your own research, but maybe i'll help you with that bit. So, first off, let's unpack what actually happened, because a lot of people seem to be confused.

Most people only saw the note that came out on saturday, and that is what most media reported, but in fact the fca took action a day earlier on friday, the 25th of june, the fca posted this pursuant to the section 55l3a of the financial services and markets Act 2000. The financial conduct authority has decided to impose the following requirements on finance markets limited the firm must not without the prior recent consent of the fca carry out any regulated activities for which it has part 4a permission with immediate effect. I will explain what this means in just a second, let's get through the rest of this by close of business on the 30th of june 2021, the firm must display in a prominent place on the website, www.binance.com and any other communication channels or social media, including, but Not limited to the binance mobile and desktop applications, a notice stating finance markets limited, is not permitted to undertake any regulated activity in the uk. Due to the imposition of requirements by the fca finance markets.

Limited is not currently permitted to undertake any regulated activities without the prior written consent of the fca. No other entity in the binance group holds any form of uk authorization registration or license to conduct regulated activity in uk. This is super important and, as most people didn't bother reading the notice. This says this is not specific to binance uk, although the initial thing up top as i'm looking at this does mention the uk entities talking about binance mark limited you'll notice, that this paragraph is saying that the website www.binance.com and all of their apps and other applications And social media all fall under this.

They are saying that this applies to every single part of the whole big group of companies that are part of binance. This is critical. The firm will remove or where this is not practical, give instructions for the removal of any advertising financial promotions it currently has live in whatever form they take by the close of business on 30th of june 2021. So the fca has directly ordered binance to stop all marketing activity for uk customers and has given them a few days to implement this.

Let's continue reading the firm must provide written confirmation of the steps it has taken to meet the requirements set out in 1.1. Part 2 and one point one part three to the fca by close of business on 30th of june 2021.. So not only does binance have to stop marketing, plays big disclaimer banner and stop operating and regulated activities, but they also have to go back to the fc and confirm to them by wednesday this week in two days that they have done so i'll. Explain what these regulated activities are in just a second, let's finish this notice.

The firm must secure and preserve all records and or information, physical or electronic relating to all uk consumers from its system in their original form or in a copy proved to be identical to the material source. These must be retained in a form and at a location within the united kingdom to be notified to the fc in writing by second of july 2021 such that they can be provided to the fca or to a person named by the fsa promptly. On its request. This one is fascinating.

The fca is basically saying that they will be coming to binance and requesting the data on all uk customers, all their transactions interactions, everything and they have told binance that they have one week to prepare and ensure that this data is available. So what is a regulated activity, because this is something that most people seem to have misunderstood for an exchange like binance. That is actually a few different things. First, off dealing in various types of instruments is regulated.

That's what most people were referring to. You can see that binance do have some permissions specifically, they have the debenture security and share boxes ticked with the fca, but they do not have options or futures permissions. Despite offering these services, you can see that some other companies, like etoro, for example, do have these permissions. If you want an example of what this looks like when people do have the necessary paperwork.

So here is the super important thing that you really need to know operating a cryptocurrency exchange is a regulated activity in the uk. It is something that you have to have express permissions from the fca to do from the 10th of january 2020. Every cryptocurrency exchange that operates in the uk has to register with the fca they have to be registered and receive permissions to operate. This requirement came through the money laundering, terrorist financing and transfer of funds brackets information on the payer regulations 2017.

But the regulation only took effect earlier last year. You can find out if a firm is properly registered by going to the fca register and typing. The name of the firm in the fca also have a big list of companies that have a temporary registration they've registered, but the process hasn't completed yet you'll notice that big other companies like bitstam, scx, dot, io and etoro, are all on that list. Binance is not now, binance does have permissions to hold customer money, which is good.

This allows you to deposit money and then binance have to hold it in a segregated bank. Account it is protected, cannot be accessed by businesses for their own needs, but this notice that the fca have published means the binance can no longer, and i quote the fca here carry out any regulated activities for which it has part 4a permission just in case. Anyone wants to know what a part 4a permission means you can go and check section 22, the financial services and markets act 2000 and all the subsequent amendments and revisions to it. That section includes the investment into any asset right or interest, and cryptocurrency in uk is treated as an asset.

Also section 55 l of the same act tells you why the fca might go and place such a ban on a company. There are only three possible reasons, so it's quite easy number one that entity is failing or is likely to fail to satisfy the threshold conditions for which the fca is responsible. Reason number two: it has failed during a period of at least 12 months to carry out a regulated activity to which the part 4a permission relates or option number three. It is desirable to exercise the power in order to advance one or more of the fca's operational objectives.

So, according to the fca, either binance have already failed to satisfy fca's requirements for running their business, in line with what they should be doing or the fca thinks that they are likely to fail soon or there is some other mysterious reason i'll. Let you speculate and decide which one of these is more likely. So here is what this all means running. A crypto exchange in uk is a regulated activity.

Holding customers. Money is also a regulated activity, as of last friday. Binance is not allowed to carry out any regulated activity in the uk. This is a complete ban and it applies to all parts of the binance group, whichever entity is operating, the website app, etc.

This means that if you are based in the uk and you hold money or crypto with finance, you are dealing with a company that is not legally allowed to operate in the uk and by virtue of continuing to provide their services, are some people may presume acting Unlawfully the uk ban actually happened one day after japan and ontario canada implemented the same ban. So it sounds like binance is doing something or not doing something that all of these different regulators in these different countries find very concerning to the point where they go and place it back. If you use binance and you are based in the uk, you need to decide for yourself what you want to do, but the fca does provide some helpful guidance and this is their words, not mine in their crypto assets. Note they state if they aren't allowed to carry on business, we suggest withdrawing your crypto assets and or money as the firm is now operating illegally.

I hope that tells you what you need to know. I hope that explains exactly what situation is. If you like this, please don't forget to smash the like button future algorithm. Thank you.

So much for watching and i'll see you guys later. You.