On 7 July 2021 Gherson’s white-collar crime team wrote a further blog explaining how it had been reported that Barclays Bank have subsequently informed customers that they would no longer be able to send credit and debit payments to Binance following the warning by the FCA.
If you have had issues with your bank, or just want advice in relation to the regulation of this complex area then Gherson’s white-collar crime team can offer expert advice on the best way to resolve the situation.
What is the latest update?
On 25 August 2021 the FCA published an update to its 26 June 2021 Consumer Warning. This update included the First Supervision Notice against Binance Markets Limited, dated 25 June 2021, which states at one point that,
“[b]ased upon the Firm’s engagement to date, the FCA considers that the Firm is not capable of being effectively supervised”.
This Notice also highlights how, in June 2020, the Firm submitted an application under regulation 57 of the Money Laundering Regulations (“MLR”) to be registered as a cryptoasset business. More generally, issues with the MLR registration process have been highlighted in previous blogs, Cryptoassets: Temporary Registration Regime extended.
Finally, the 25 August FCA update notes that on 25 June 2021 the FCA imposed requirements on Binance Markets Limited and that the firm complied with all aspects of the requirements. It has been reported by Reuters (and noted by the FCA) that a Binance spokesperson said that Binance Markets Limited has fully complied with all the watchdog’s requirements and continues to engage with the FCA to resolve outstanding issues. In fact, the 25 August 2021 update notes that these requirements remain in place and Binance Markets Limited are still unable to conduct regulated business in the UK.
For those interested in developments in the on-going regulation of the crypto space, this remains a very interesting area to watch going-forwards.
General issues in the regulation of crypto – is it time for a bespoke regime?
Teething issues in the regulation of any new technology are to be expected. Indeed, Gherson’s white-collar crime and regulatory team have previously discussed issues in specific areas of regulation of the crypto industry. They have even argued that it is time for the implementation of a more bespoke crypto-regulation regime.
As regulatory bodies and governments begin working more and more closely with the crypto market, such issues will need to be worked out, and quickly. One hopes this process is done transparently, and with an end goal of aligning the regulatory framework with how the technology actually works.
For those who would like advice on this issue, our specialist regulatory and compliance team can guide individuals and companies through the process. Do not hesitate to contact us, send us an e-mail, or alternatively, follow us on Twitter, Facebook, or LinkedIn to stay-up-to-date.
The information in this blog is for general information purposes only and does not purport to be comprehensive or to provide legal advice. Whilst every effort is made to ensure the information and law is current as of the date of publication it should be stressed that, due to the passage of time, this does not necessarily reflect the present legal position. Gherson accepts no responsibility for loss which may arise from accessing or reliance on information contained in this blog. For formal advice on the current law please don’t hesitate to contact Gherson. Legal advice is only provided pursuant to a written agreement, identified as such, and signed by the client and by or on behalf of Gherson.
©Gherson 2021