U.K Binance users are reporting the suspension of fiat withdrawals and deposits on the crypto exchange. Additionally, attempts to on/off ramp show the service is suspended for maintenance.
This comes as a Financial Conduct Authority (FCA) published an article on the weekend warning consumers about Binance Markets Limited and the Binance Group.
Given the close succession of the two events, social media is awash with talk that the suspension is more than just a temporary maintenance issue.
Neither Binance nor its payment processor partners have commented on the matter, fueling speculation of a crypto crackdown.
The FCA Sound The Alarm On Binance
The FCA posted an article on Saturday stating that Binance Markets Limited is not authorized to conduct business in the U.K. It also warned that no other Binance Group entities have the green light to conduct regulated activities in the U.K either.
It also mentioned that crypto derivatives, which they consider securities, can only be advertised and sold by firms authorized by the FCA.
“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’”
Given that the article contained no new information, many took this to mean its business as usual.
In response, Binance posted a tweet saying the FCA notice has no impact on its services.
“The FCA UK notice has no direct impact on the services provided on Binance.com. Our relationship with our users has not changed.”
However, as news broke of the suspension of fiat withdrawals and deposits, some Binance users began speculating that there’s more happening behind the scenes than either party is willing to disclose at this time.
Is A U.K Crypto Crackdown Taking Place?
One Reddit user said the issue comes down to a failed attempt by Binance to gain regulatory status in the UK via the Binance Markets Limited (BML) entity.
BML was established by acquiring an existing firm, called EDDIEUK Limited, that had already received FCA approval.
The poster claims that a condition of approving the newly formed BML entity was to supply information. Supposedly this included user info and details on the company/group to counter money laundering and terrorist financing etc.
However, Binance refused to hand over this information, leading to a denial of regulatory approval and the current situation in which U.K users cannot on/off ramp.
BML is said to have withdrawn its FCA registration last month after “meeting uncompromising resistance from the regulator.”
The real danger here is that regulatory resistance could leave the U.K stranded as far as crypto innovation is concerned.
However, with hearsay and unconfirmed speculation making the bulk of this report, it isn’t easy to know what to make of this situation.
Binance Announces Initial Game Offering for Horses and Attacks “CryptoGames” Market
Binance has just announced the launch of a new addition to the gaming and blockchain ecosystem.
According to a message sent to Cointimes, the world’s largest brokerage firm wants to “build the ultimate launch pad for NFT games and gamers.” To do this, it will take advantage of the Binance NFTs infrastructure to launch an Initial Game Offering (IGO).
“Through IGO distributions, Binance NFT connects the global crypto community to high quality blockchain games and high quality in-game NFT assets. Binance NFT is a dedicated hub where promising game projects can develop and build communities. Our aim is to help strengthen the gaming industry and develop this sector to become more popular. ” – said Helen Hai, global leader of Binance NFT
IGOs may contain in-game assets such as early access passes, weapons and items, exclusive Binance skins, other cosmetics, and much more.
Binance NFT Announces First IGO
And the first IGO has already been announced, it’s DeRace with a release date of October 26th.
The NFT item game is a horse racing ecosystem, “where players can participate in horse races, create their NFT with unique characteristics, host races on their own NFT racecourse and earn profits in the process.”
To participate in the purchase of DeRace NFTs you only need to have a Binance account and login to the Binance NFT platform.
The game market using blockchain has grown rapidly. In Brazil, the search for this type of game surpassed even the search for more traditional assets such as Bitcoin and Ethereum.
Legendary Trader Peter Brandt Challenges Binance with Four Questions about 88% BTC Crash
Here’s what is unclear for Mr. Brandt about mysterious Bitcoin (BTC) flash-crash of Oct. 21, 2021
Prominent trader and analyst Peter Brandt has taken to Twitter to ask his four questions in the context of the flagship crypto’s 88% dropdown.
What do Binance and Binance.US have in common?
First of all, Mr. Brandt challenged the character of corporate relationships between Binance and Binance.US, its unit focused on American markets.
1. What is exact corp. relationship @binance w/ @BinanceUS
2. Will firm release T&S with all trades/volume/price?
3. Did firm take opposite side of client fills
4. Will firm change low to reflect actual fills
cc: @GaryGensler @CFTC @SECGov @cz_binance @IBKR pic.twitter.com/huqzZbSGIt— Peter Brandt (@PeterLBrandt) October 24, 2021
Also, Mr. Brandt asks whether Binance is planning to release detailed documents to specify statistics for trades, their volume and prices during the flash-crash.
Then, the trading legend asked about the role of the platform in taking the opposite side of a client fills.
Besides the Binance CEO and co-founder Changpeng “CZ” Zhao, Mr. Brandt mentioned the Interactive Brokers platform, U.S. watchdogs CFTC and SEC and Gary Gensler, the SEC chairman.
Most expensive “trading algorithm bug” ever?
Also, Mr. Brandt attached a screenshot of a tweet by CZ when Binance’s boss warned his audience about expected volatility spikes across cryptocurrency markets.
Finally, Mr. Brandt added that he never used Binance for trading.
As covered by U.Today previously, on Oct. 21, 2021, amidst a spending rally, the Bitcoin (BTC) price briefly tanked to the $8,000 level, losing more than 88% in no time.
A similar flash-crash was registered on 26 other low-liquidity exchanges. A Binance.US representative attributed this dramatic plunge to a critical bug in third-party mechanisms by one of the platform’s sophisticated institutional clients.
Binance Bitcoin Balances Are Draining: 40,000 BTC Moved Away from Biggest Crypto Exchange
According to CryptoQuant data, Binance cryptocurrency exchange once again faced a massive fund outflow totaling 38,246 BTC. After a significant drop in the Bitcoin balance, the total balance on the sheets is close to 500,000.
In-house redistribution of funds
Previously, Binance.US faced a major bug that led to so-called “slippage”—the difference between the expected price of a trade and the actual execution of an order.
Whenever the order book on the market is too thin and an exchange cannot provide enough liquidity, volatility on the asset tends to rise exponentially, which leads to a massive drop in value.
Due to the bug that appeared, the price of Bitcoin on Binance.US has dropped to $8,000, with numerous buy orders being executed on the way down. In order to provide more liquidity to the market on Binance.US, the main platform could have moved some of its funds to the U.S.-targeted platform, which is being counted by on-chain metrics as “outflows.”
With Bitcoin moving past the previous ATH and trading volumes remaining stable, some traders and investors are choosing to move their funds away from exchanges and keep them in their wallets.
According to volume metrics, no significant selling pressure has been present on centralized exchanges, along with no abnormal trading activities.
Previously, notable exchange inflows appeared back in May, when Bitcoin’s price retraced from the previous ATH to $29,000. Most retail investors have moved funds from their wallets to the exchanges to take profit.