Binance extra cautious in UK with new domain launch to avoid regulatory troubles
- Binance has launched a new domain for UK users, this time with extra care to remain in compliance with regulations.
- The exchange partnered with a UK player for marketing and communications for its expertise in the new Financial Promotions Rules.
- However, certain offerings have also been stricken off the catalog for the country’s users. Changes implemented beginning October 8.
- Targets only retail users covered under the new Financial Promotions Regime. Some institutional and professional investors exempted.
Binance Exchange has launched a new feature in the UK, with cognizance of its regulatory troubles. With this in mind, the largest exchange by trading volume has exercised extra care, bringing in a new player that could help steady its hand.
Also Read: Binance cancels UK registration amidst mounting regulatory hurdles
Binance launches new domain in UK
After canceling its UK registration amidst mounting regulatory hurdles, Binance has found a way to expand its ecosystem in the country. In June, the Financial Conduct Authority of the UK completed Binance’s request to cancel Binance Markets Limited’s (BML) registration with the agency.
In a recent announcement, however, the exchange has launched a new domain, ensuring compliance with the region’s new Financial Promotions Regime. With the new venture, the largest exchange by trading volume has collaborated with a local firm, Rebuildingsociety.com Limited, an active FCA-regulated company located in Leeds, to oversee Binance’s marketing and communications materials.
Specifically, Rebuildingsociety.com Limited will approve or reject marketing and communications materials from Binance, based on whether they adhere with the rules established by the FCA. This means that any materials that make it to the UK market henceforth will have passed all the checks.
With this new domain, only products and services that comply with UK regulations will be featured. Five products have already been stricken off the list of offerings, including gift cards, academy, research, feed, and referral bonuses, according to an official Binance blog. The changes are due for implementation beginning October 8.
Binance keen on compliance
Amidst the endless regulatory troubles globally, Binance is doubling down on compliance, seeking to steer clear of confrontation with regulators. Nevertheless, the exchange’s bone of contention with the US Securities and Exchange Commission (SEC) continues to abound, despite the involvement of stablecoin issuer Circle.
The Exchange is also facing multiple charges for law violations, including facilitating trades in crypto that the SEC deemed “unregistered securities”, such as Solana (SOL), Cardano (ADA) and the Binance stablecoin BUSD.
Cryptocurrency metrics FAQs
What is circulating supply?
The developer or creator of each cryptocurrency decides on the total number of tokens that can be minted or issued. Only a certain number of these assets can be minted by mining, staking or other mechanisms. This is defined by the algorithm of the underlying blockchain technology. Since its inception, a total of 19,445,656 BTCs have been mined, which is the circulating supply of Bitcoin. On the other hand, circulating supply can also be decreased via actions such as burning tokens, or mistakenly sending assets to addresses of other incompatible blockchains.
What is market capitalization?
Market capitalization is the result of multiplying the circulating supply of a certain asset by the asset’s current market value. For Bitcoin, the market capitalization at the beginning of August 2023 is above $570 billion, which is the result of the more than 19 million BTC in circulation multiplied by the Bitcoin price around $29,600.
What is trading volume?
Trading volume refers to the total number of tokens for a specific asset that has been transacted or exchanged between buyers and sellers within set trading hours, for example, 24 hours. It is used to gauge market sentiment, this metric combines all volumes on centralized exchanges and decentralized exchanges. Increasing trading volume often denotes the demand for a certain asset as more people are buying and selling the cryptocurrency.
What is funding rate?
Funding rates are a concept designed to encourage traders to take positions and ensure perpetual contract prices match spot markets. It defines a mechanism by exchanges to ensure that future prices and index prices periodic payments regularly converge. When the funding rate is positive, the price of the perpetual contract is higher than the mark price. This means traders who are bullish and have opened long positions pay traders who are in short positions. On the other hand, a negative funding rate means perpetual prices are below the mark price, and hence traders with short positions pay traders who have opened long positions.
Author
Lockridge Okoth
FXStreet
Lockridge is a believer in the transformative power of crypto and the blockchain industry.
