Binance has Financial Services Licence revoked
Binance has Financial Services Licence revoked
The crypto currency sector is coming under stringent regulation and enforcement from global regulators if you haven't gotten across why the focus all of a sudden, it's because of two major collapses that saw trillions wiped from peoples bank accounts.
First was the Terra (Luna) Collapse which saw it's founder Do Kwon run and hide in Europe and while enforcement didn't come in hard after Luna's collapse it was enough to spike interest from governments across the world.
Many were skeptical of crypto currency and while one major collapse probably wasn't enough for policy makers, regulators globally to start focusing Crypto markets, you can bet your last dollar a second major collapse a short time later has caused enforcement.
FTX Collapse that got us here
The FTX collapse is one for the ages, the child CEO all living with other kids in a penthouse without much knowledge of financial markets. It's collapse showed the world how fragile and easily manipulated Crypto can be with liquidity pools not as secure as many first through.
Sam the CEO met with US policy makers and made donations for crypto friendly policy which further showcases how things can be a little.... well, lobbied by people with money.
As reported in Coindesk the current market focus has been caused by FTX and now everyone is coming under the microscope.
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Binance has Financial Service Licence canned
Binance is coming under further scrutiny with the CFTC charging Binance and it's founder with willful evasion of Federal Law and operating an illegal digital asset derivatives exchange. Binance has continued to grow and is now the largest exchange globally.
Australia has cancelled Binance's Financial Services Licence with Binance having until April 21 to wrap up it's services to Australian clients. The reason behind the cancellation is due to the company reporting it's investors as wholesale investors. However, when ASIC investigated they identified retail investors were placed in wholesale basket.
Under Australian Law retail investors have protections including access to external dispute resolution processes such as the Ombudsman which can investigate claims of misleading financial advice.
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What will the future hold?
While regulation is not new to many industries the Decentralised Finance sector is fast becoming a hot topic and while many previously advocated for less regulation as more and more information is uncovered the public is seeing what's behind the curtains.
Many projects are not sustaining capital to enable investors to exit and many are at risk of collapse, which is why it is important for people to undertake research and play with caution.
image sources provided supplemented by Canva Pro subscription. This is not financial advice and readers are advised to undertake their own research or seek professional financial services.
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April 21st is not a lot of time.
It's a targeted attack to take out crypto services and I don't know if they can really do anything about it. I doubt CZ or Binance has enough power to change any of the decisions. I don't want these services to fail because they are the on and off ramps.
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Agreed
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https://twitter.com/1291387911238086664/status/1644627380328337408
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Choke point for sure. I’m hopeful that we can get around this nonsense and get to a middle ground but if there’s one thing about government it likes to be a stick in the mud.
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The dominant position that Binance has is shrinking. Who knows if in two years it will still be the largest exchange in the world. I think not. Thanks for information
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It's Regulatory BS!
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