Binance has taken a confusing hit over the past few days with many countries clamping down on it due to regulatory issues arising from cryptocurrancy trading. It's quite confusing as most recently in the United Kingdom Binance was applying for approval from the FCA only to be knocked back. This led to the belief that Binance was banned in the United Kingdom and in some parts there is truth to it.
The non approval only applies to the UK branch of Binance and not Binance as a whole. The United Kingdom is still enabling it's residents to trade on Binance. Confusing?
You're not alone if you find this the slightest bit confusing but it's actually a really good step forward. It indicates that change is coming to the sector and governments around the world are taking cryptocurrancy and block chain tech seriously.
Back in time
Let's jump back in time, not too far back just around October 2020 in the UK where the FCA issues a ban on cryptocurrancy. You can read their ban Here it comes at a time where the narrative of cryptocurrancy was seen negatively. Where governments were attempting to prevent people purchasing cryptocurrancy they were still quite limited in what could and couldn't be done. At an individual level governments can't really tell you what to do with your money. It's covered under the Charter of Human rights under self determination.
It's important to note that there is no clear cut definition for self determination and thats probably a good thing. However it does include peoples being free to pursue their economic, social and cultural development. Source
Effectively how one can interpret the charter in cryptocurrancy is that if people want to throw their cash at an internet hash rate they are free to do so and do so uninterrupted. Keeping in mind this does not exclude the need to pay taxes and where it does cause a barrier is means to do so.
The charter of human rights applies to people not businesses so businesses can be subjected to regulatory change. But then again it is not clear cut while keeping in mind that the charter of human rights is in effect in many countries around the world you can't just do something and claim article 15. You'll need to head into the court room to defend your position and win the battle. But effectively you can spend money on it. The same way I can jump on Alibaba or another Chinese company or even any company in any country and buy something and have it shipped to me in Australia. As long as it's not illegal I will have it delivered to me, even if it is illegal I am still able to purchase it, it just means I won't have it delivered and I will be charged. Charter of Human rights also covers this through the same policy. The majority of people in my nation have self determined X is illegal.
Regulations in development
The difference now compared to October last year is that G7 nations have agreed to make cryptocurrancy work and to develop their own CDBC so they will slowly commence undoing and deregulating the regulations that were enacted so they can trial their projects. It would also be a double standard and illegal for governments to ban something for people and then they head out and do something. It would also open up alot of legal loopholes again, required court battles to justify. So it appears that governments are taking a step back in the enforcement while they investigate and develop policies and procedures as well as regulatory change that will enable the sector to grow but ensure anti laundering and crime is prevented.
Future is bright
So it's safe to say at this point in time governments are looking at tearing back legislation and developing an industry that's in its infancy. While the waters may look turbulent and rocky the skies are blue and clear. How it unfolds and what Cryptocurrancy will look like in the near future is anyone's guess but it's a pretty exciting time to be involved.
Just remember, pay your taxes and don't behave in dodgy or criminal behaviour and you'll be OK.
Images sourced: CANVA