Connect with us

Cryptocurrency

Binance: Barclays blocks payments to cryptocurrency exchange Binance days after FCA ban – why is it facing action?

Published

on

Binance: Barclays Blocks Payments To Binance Cryptocurrency Exchange Days After FCA Ban – Why Is It Traded? (Image: Ina Fassbender / Getty)

Since the FCA issued the warning about the security of the Binance cryptocurrency exchange, it has been scrutinized more intensively by customers, regulators and banks alike.

The move came as part of a wave of international action by government agencies around the world, alerted to the rapid rise and centrality of crypto in new avenues for money laundering and organized crime.

Log In to our daily newsletter

The i-newsletter cut through the noise

On June 21, the Chinese government said it would crack down on the significant amount of cryptocurrency mining in the country, with the repercussions of the announcement that the prices of Bitcoin, Dogecoin and Ethereum are falling.

Bitcoin prices even fell below the dreaded $ 30,000 threshold that many commentators claimed could lead to a mass sell-off of the cryptocurrency and even greater volatility.

Continue reading

Continue reading

Bitcoin price: has it recovered from falling below $ 30,000? Is China still causing …

Another crypto hotspot, South Korea, also seized the crypto assets of around 12,000 citizens accused of tax evasion totaling over $ 47 million, and the Metropolitan Police carried out the largest seizure of cryptocurrencies in the UK to date to fight money laundering – and seized an estimated value of 114 million pounds of cryptocurrency.

Here’s everything you need to know about what the move against Binance means.

What is binance

Binance is a cryptocurrency exchange used worldwide by people looking to trade cryptocurrencies like Bitcoin, Ethereum, and more, with their website providing a centralized platform through which to participate in decentralized currency exchange by buying, selling, or selling loans secured by cryptoassets receives.

Primarily based in the Cayman Islands, Binance Group has a number of companies around the world, including London-based Binance Markets Limited.

Although he recently received a letter of recommendation from the Regional Organized Crime Department in the South East United Kingdom, for “[their] Working together to support our investigation into the delivery of Class A Controlled Medicines over the Dark Web, “Binance has now become a stronger subject of oversight by UK regulators.

Why did the FCA banned Binance?

The FCA said in its statement that Binance Markets Limited, a subsidiary of the larger Binance Group company, “may not conduct regulated activities in the UK” and, as required by the FCA, not “without the prior written consent of the FCA”.

The FCA continued: “No other Binance Group company has any form of UK license, registration or license to conduct regulated activities in the UK.

“The Binance Group appears to offer a range of products and services to UK customers through a website, Binance.com.”

Binance and similar exchanges, which call themselves “the world’s largest crypto exchange”, must be registered with the Financial Conduct Authority (FCA) to operate fully in the UK.

This decision by the tax authorities comes after plans for a new regulated subsidiary “Binance UK” and a crypto exchange based in Great Britain have failed.

The FCA warned UK customers and consumers against investing in cryptocurrency or cryptoassets that are not regulated by traditional government or monetary authorities and operated on a decentralized basis.

Binance tweeted in response that the FCA’s announcement “has no direct impact on the services” it offers on its exchange platform.

“BML is a separate legal entity and does not offer any products or services through the http://Binance.com website.

“Binance Group acquired BML in May 2020 and has not yet launched its UK business or used its regulatory clearances from the FCA.”

The FCA’s measures are not entirely surprising, however, as the company owns the giant crypto exchange Binance Holdings Ltd. is also being investigated for potential criminal activity by several US federal agencies, including the US Department of Justice, the Internal Revenue Service, and the Commodity Futures Trading Commission.

How will Binance’s UK customers be affected?

UK customers using Binance services can still use the platform, but the FCA’s warning urges consumers to be cautious and be aware of the greater risks of investing in cryptocurrencies.

However, the FCA has a deadline of March 31, 2022 that crypto asset companies must comply with and register in order to continue trading in the UK.

Key to the FCA’s concerns about cryptocurrency operations is the rise in scams across social media platforms, often out of the blue asking users about investment opportunities in coins such as Bitcoin, Dogecoin, and Ethereum.

According to the FCA, those using such platforms and trading crypto should “do further research on the product you are considering and the company you are planning to invest with.”

On June 28, UK based users started reporting that they were unable to make faster withdrawals from their accounts on the Binance website after confusion over the future of Binance in the UK.

Those logging into their accounts and preparing for withdrawals were faced with a notice that the payment channel that allows UK users to make quick withdrawals from their sterling accounts was “under maintenance”.

The decision left many users frustrated and skeptical about the timing of this maintenance, which came online just hours after news of the FCA banning the platform.

Has Barclays stopped making payments to Binance?

Today (July 5th), Barclays Bank informed UK customers who had previously made payments to Binance that payments to the platform have been blocked until further notice, stating that this was being done “to help you find your Keeping Money Safe ”.

Barclays customers received the following message:

“Since you made a payment to Binance this year, we wanted to let you know that we are suspending credit / debit card payments until further notice.

“This is to help you keep your money safe.

“For more information, please search FCA Binance online.”

A Barclays spokesman said, “Barclays intends to stop making credit and debit card payments to Binance as of today.

“This promotion does not affect the ability for customers to withdraw money from Binance.

“The decision was made after the FCA warned consumers to keep our customers’ money safe.”

A message from the editor:

Thank you for reading this article. We need your support more than ever as the changes in consumer habits caused by the coronavirus are affecting our advertisers.

If you haven’t already, support our trusted, fact-checked journalism by purchasing a digital subscription.

Continue Reading
Click to comment

Leave a Reply

Your email address will not be published.

Cryptocurrency

Orlando residents launch cryptocurrency group to educate and give back to international communities

Published

on

From donations to food drives, there are many ways you can give back to communities in need but three Orlando residents are turning to digital tools to support low-income families in developing countries. Chris Delgado, Fabian Kumpusch and Vance Fundora share a vision of rebuilding and impacting communities around the world.”Where can our dollar literally go the furthest?” co-founder of ‘Crypto Impact’ Vance Fundora said. The answer led them to the way they grow their own personal finances – cryptocurrency which is a type of currency that uses digital files as money. The men recently launched their group ‘Crypto Impact’ where they’re traveling abroad to help communities in poverty. “You can literally send money to an individual in need through blockchain technology where banks are shut down and you can’t really wire money like we do here in the states and those countries don’t have a cell or Venmo type thing,” co -founder of ‘Crypto Impact’ Chris Delgado said. “Normally when people donate they’re donating to a bigger cause where they’re providing food for disaster relief,” Delgado said. “This where ‘Crypto Impact’ comes into play we’re delivering specific needs to individuals and we’re there on the ground.”When WESH 2 spoke with Delgado and Fundora, their third business partner was in Vietnam where he was connecting people with clothing, food and clean water. It’s the start of future international projects that will all be funded by digital coins.”It’s just a new industry and it’s a lot of opportunity across the board in terms of technology available,” Fundora said. Being on the ground with the people they’re giving back to is vital for the men so they can educate and raise awareness. “To show not only the beauty behind crypto and bring mass adoption, but also to give in other countries where you can’t necessarily bring in hundred, 200 or 300 hundred dollars but with crypto you can,” Delgado said. The friends have plans to travel and spread ‘Crypto Impact’ to other developing countries in the future.

From donations to food drives, there are many ways you can give back to communities in need but three Orlando residents are turning to digital tools to support low-income families in developing countries.

Chris Delgado, Fabian Kumpusch and Vance Fundora share a vision of rebuilding and impacting communities around the world.

“Where can our dollar literally go the furthest?” co-founder of ‘Crypto Impact’ Vance Fundora said.

The answer led them to the way they grow their own personal finances – cryptocurrency which is a type of currency that uses digital files as money.

The men recently launched their group ‘Crypto Impact’ where they’re traveling abroad to help communities in poverty.

“You can literally send money to an individual in need through blockchain technology where banks are shut down and you can’t really wire money like we do here in the states and those countries don’t have a cell or Venmo type thing,” co -founder of ‘Crypto Impact’ Chris Delgado said.

“Normally when people donate they’re donating to a bigger cause where they’re providing food for disaster relief,” Delgado said. “This where ‘Crypto Impact’ comes into play [because] we’re delivering specific needs to individuals and we’re there on the ground.”

When WESH 2 spoke with Delgado and Fundora, their third business partner was in Vietnam where he was connecting people with clothing, food and clean water.

It’s the start of future international projects that will all be funded by digital coins.

“It’s just a new industry and it’s a lot of opportunity across the board in terms of technology available,” Fundora said.

Being on the ground with the people they’re giving back to is vital for the men so they can educate and raise awareness.

“To show not only the beauty behind crypto and bring mass adoption, but also to give in other countries where you can’t necessarily bring in hundred, 200 or 300 hundred dollars but with crypto you can,” Delgado said.

The friends have plans to travel and spread ‘Crypto Impact’ to other developing countries in the future.

Continue Reading

Cryptocurrency

Bitcoin is ‘not immune’ from stock market volatility (Cryptocurrency:BTC-USD)

Published

on

MicroStockHub/E+ via Getty Images

Bitcoin (BTC-USD) has often been hyped as an inflation hedge or as an alternative investing class, an opportunity to diversify a portfolio. However, evidence continues to mount, especially in the recent market downturn, that crypto holds a high correlation with stocks (SP500).

This connection is evidenced by the fact that both bitcoin and equities grinded higher in the easy money era of 2020-2021, and now both are facing cyclical downturns as financial conditions tighten and liquidity dries up.

“The correlation between bitcoin and equity indices has remained high and will continue to do so unless bitcoin becomes widely used as a medium of payment – which looks unlikely to happen soon,” Morgan Stanley analyst Sheena Shah wrote in a note May 10.

For some context, the rolling 120-day correlation between the S&P 500 index (SP500) and bitcoin (BTC-USD) was recently standing at 0.60, the highest reading since the series began in 2011, Charles Schwab Chief Investment Strategist Liz Ann Sonders wrote in a Twitter post May 10. In other words, bitcoin’s price action resembles that of stocks and therefore risk assets. Take a look at the chart below to further grasp how bitcoin has fared Y/Y with the S&P 500 as well as S&P volatility, which is inversely correlated with the major stock index.

For a macro perspective, as central banks across the globe pivot to tighter monetary policy (some more aggressive than others) in an effort to dull widespread inflationary pressures, global money supply growth continues to decelerate from its peak in Feb. 2021, Shah noted, adding that bitcoin’s (BTC-USD) market cap growth topped a month later in March 2021, implying that global liquidity and bitcoin could share a connection.

Note that in 2020, speculative assets like bitcoin soared in price in the wake of extraordinary accommodative monetary/fiscal policy and surging money supply. Stifel recently predicted for bitcoin to reach as low as $15K as shrinking M2 money supply growth, a broad measure of money in circulation, “should sharply weaken Bitcoin.”

Looking at the BTC-stocks correlation from a different lens, retail investors used to be the dominant cryptocurrency trader around four years ago, but now “the largest proportion of daily crypto trading volumes is from crypto institutions, much of which comes from them trading with each other,” Shah explained.

This dynamic has contributed to bitcoin’s (BTC-USD) strong bond with equities since those institutions are sensitive to the availability of capital and therefore interest rates, she added.

Commentary: “We’ve definitely seen [bitcoin] trade more in line with stocks and more in line with the Nasdaq and tech stocks, in particular, over the last few quarters,” Coinbase (COIN) CFO Alesia Haas told CNBC’s Squawk Box in an interview May 12. “Lots of institutional money has come into crypto, and with the broader volatility that we’re seeing, we’ve seen strong correlations,” she added.

Take a look at SA contributor’s The Digital Trend’s bullish take on bitcoin.

Earlier this past week, (May 12) Bill Miller said he hasn’t sold any bitcoin.

Continue Reading

Cryptocurrency

Pros, cons of cryptocurrency mining in upstate New York

Published

on

Last month, the New York state Assembly voted to pass Democratic Assemblymember Anna Kelles’ two-year moratorium on new cryptocurrency mining. The idea behind the bill is to give the New York State Department of Environmental Conservation the time to conduct an environmental impact study of the practice.

The bill would prevent new permits from being issued for a very specific kind of cryptocurrency operation, known as carbon-base fueled, proof-of-work mining operations, that use behind-the-meter energy.

The bill still needs to pass in the state Senate and be signed by Gov. Kathy Hochul before it can become law.

The allure of cryptocurrency is that by using blockchain technology, financial transactions are instantaneous, secure and very difficult to trace. But there is a downside to proof-of-work mining: it takes enormous amounts of energy to run the thousands of computers used to “mine” coins.

This is why Assemblymember Kelles said her bill is so narrowly focused.

“This particular type of validation of cryptocurrencies is called proof-of-work, which is synonymous with cryptocurrency mining. There is no other kind of method that is called mining. It has been found across the globe to use phenomenal amounts of energy in comparison to other forms of validation such as proof-of-stake, for example,” Kelles told Capital Tonight.

Cryptocurrency “mining” isn’t mining in the usual sense of the word. It’s millions of computers competing with each other to validate transactions. The more computers a miner has, the greater the advantage — and the more energy used.

Upstate New York is attractive to cryptocurrency miners for a variety of reasons, including abundant clean air and water, relatively cool temperatures and cheap hydroelectric energy with which to power computers.

Upstate New York also has several old power plants that are ready-made to house these mining operations, some of which are being purchased by publicly-traded companies. These companies are re-purposing the power plants to make their own energy “behind the meter,” meaning it is produced and consumed on-site.

“We are a prime target,” Kelles said of upstate.

One of the largest cryptocurrency mining operations in upstate New York is Greenidge Generation, located on the shores of Seneca Lake in the Finger Lakes region. Critics, including Kelles, argue that the crypto-mining taking place at Greenidge is hurting the already established agritourism and wine industry there.

The Greenidge Generation bitcoin mining facility is in a former coal plant by Seneca Lake in Dresden. (AP Photo)

The assembly member also argues that cryptocurrency mining is not a big job creator.

“Mining itself is not a huge job creator because the computers, first of all, are doing all the work. But secondly, what’s really important, is that the algorithm they are running is very simple. It’s not like the algorithm for the Skype app… and therefore it doesn’t take a massive amount of engineering jobs…to maintain,” Kelles said.

“[Cryptocurrency mining] is a very small fraction of jobs compared to [agritourism],” Kelles said.

But cryptocurrency advocates, including Republican Assemblyman Robert Smullen, argue that New York is a world leader in financial services, so why shouldn’t the state lead when it comes to cryptocurrency as well?

Smullen also takes issue with Kelles’ characterization of the jobs created by such operations.

“These are good jobs because they’re electrical jobs, essentially, is what they are, and they’re running all of these facilities,” Smullen explained. “This is a new form of advanced manufacturing.”

Indeed, the union IBEW is a supporter of cryptocurrency mining.

As for Greenidge Generation in particular and its plan to expand from the 17,000 computers it has operating currently, Smullen isn’t concerned.

“[Greenidge] is probably one factory in one small part of one town so I don’t think it’s disrupting any agritourism brand for the beautiful area of ​​the Finger Lakes,” Smullen told Capital Tonight.

What the assemblyman is very concerned about is the possibility of a two-year moratorium on new cryptocurrency operations.

“In this industry, two years is literally light speed in the blink of an eye,” Smullen said. “This industry, financial technical things, they can go anywhere.”

The key, according to the assemblyman, is getting miners to come to New York, and then keeping them here.

“This is commerce that’s very important to the future of financial services industry. During the pandemic, we saw that jobs in New York City, many of them could be done from anywhere. My concern then and my concern now is that we’ve set up a regulatory environment in this state which positively incentivizes the financial services industry, which is going to evolve over time with technology to stay in New York state,” Smullen said.

Continue Reading
Advertisement

Trending