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Bitcoin: the United Kingdom slows down the sale of certain products Posted 30 minutes ago

A branch of one of the largest cryptocurrency buying platforms, Binance, is no longer authorized to sell options or futures in the UK, UK market regulator FCA has announced.

“No entity of the Binance group is authorized to exercise a regulated activity in the United Kingdom,” the regulator said in a statement on Saturday.

The purchases of cryptocurrencies are not regulated by the market policeman in the United Kingdom, because they are not considered as financial products while options and futures contracts, means of betting on the evolution of the price, are. .

The FCA did not give details of its decision. She has asked financial companies using cryptocurrency to register with her, and is currently deciding whether or not to approve industries in this booming sector.

“The FCA notification will not impact our services, our relationship with our users has not changed,” Binance said on its Twitter account.

“The Binance site offers derivatives on highly volatile cryptocurrencies with leverage, which means that the gains, but also the losses, are quadrupled. It’s not surprising that such risky products attract the attention of regulators, ”said Laith Khalaf, analyst at AJ Bell.

Binance is one of the largest cryptocurrency exchanges. Founded in China, the platform still retains a sulphurous reputation: its headquarters have been moved to the Cayman Islands, according to the financial press, and an investigation by the American financial policeman is underway, according to the Bloomberg agency.

Like its rival Coinbase, wiser since its IPO in the United States, Binance has benefited since the end of 2020 from the breathtaking rise of the cryptocurrency market.

The price of bitcoin rose from less than $ 10,000 a year ago to a high of nearly $ 65,000 in mid-April 2021, before melting to around $ 35,000 today.

While financial giants like US banks Goldman Sachs and Citigroup are interested in cryptocurrency investments, giving the industry created by anonymous people some cachet, regulators remain very wary of these assets.

In China, the government has redoubled its efforts to prevent not only trading, but also mining of bitcoin, as the servers that run continuously to run the bitcoin network are called.

On Monday, bitcoin rose 3.21% to $ 34,162 around 7:50 a.m.

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