London Daily

Focus on the big picture.
Monday, Sep 01, 2025

Is The Regulatory Pressure on Binance A Real Threat For The Crypto Industry

Is The Regulatory Pressure on Binance A Real Threat For The Crypto Industry

Financial regulators have issued warnings (and even legal action) against Binance in the past few weeks. Is the cryptocurrency market facing a threat as Binance is the leading exchange, or is it just trending FUD, or something else?

Binance is the world’s largest cryptocurrency exchange by trading volume for some time now. It has recently faced lots of scrutiny from various financial watchdogs.

Binance is one of the most important companies in the crypto industry. What could be the impact of the regulatory threat be for the entire industry? Or is it just a temporary FUD (fear, uncertainty and doubt)?

List of Regulators After Binance Grows

Binance was Founded in 2017 following a successful $15-million ICO. The exchange quickly attracted a massive market share in terms of spot, and later, derivatives trading volume. Fast growth did not come alone. It came with the attention from global financial regulators, some of which have issued warnings or officially taken actions against the exchange.

The situation escalated recently with the United Kingdom’s Financial Conduct Authority (FCA) leading the pack. The UK regulator issued a warning to Binance Markets Limited and the Binance Group, indicating that they could not operate in the country.

Binance responded that “BML is a separate legal entity and does not offer any products or services via the Binance.com website.” Basically, nothing had changed, according to the company.

Despite the firm’s reassurance, though, more regulators joined the party. Japan was among the first, Singapore followed, and during the first day of July, Cayman Islands joined the list – stating that “Binance is not authorized to operate in the islands.”

In Canada, Ontario Securities Commission (OSC) decided to impose stricter regulatory measures on crypto exchanges to protect investors who place their money on Bitcoin (BTC) and other cryptocurrencies, which led Binance to stop operations.

On July 2nd, 2021, Thailand’s SEC took the matter more seriously. Instead of just issuing a warning, the regulator filed a criminal complaint against the Binance for operating a digital asset business without a license.

Real Threat or Just FUD?

Having regulators from different countries going after you sounds like trouble. Binance is facing extreme scrutiny amid the 2020 – 2021 bull market that saw prices within the entire space skyrocketing by triple-digit percentages in months. Regulatory claims against one of the largest crypto exchanges could bring it all to a halt.

All of these developments don’t seem like coordinated attacks, says industry analyst Adam Cochran.

According to Cochran there are a few more plausible scenarios. On one hand, he points out that a larger nation might be trying to build a case and has “called in favors” from other regulators. On the other hand, there could be collaboration to some extent to go after a criminal organization that have used Binance.

According Cochran Binance’s rapid expansion was its “only fault.” Now, as it has been put in a gray zone, they will have to work with all regulators, which can be complicated and slow down everything.

Jake Chervinsky, an influential lawyer focused on the crypto industry, commented that mass cooperation from financial regulators is possible in this case, especially given the size and exposure of Binance.

Looking back the history of crypto, we could draw conclusion that anything against the ultimate leader of the industry might result in serious consequences for the whole ecosystem that is likely to severely affect the price of bitcoin (and all other cryptocurrencies) in the short term.

Read the full article: Is The Regulatory Pressure on Binance A Real Threat For The Crypto Industry – Fintechs.fi

Newsletter

Related Articles

0:00
0:00
Close
Chinese and Indian Leaders Pursue Amity Amid Global Shifts
European Union Plans for Ukraine Deployment
ECB Warns Against Inflation Complacency
Concerns Over North Cyprus Casino Development
Shipping Companies Look Beyond Chinese Finance
Rural Exodus Fueling European Wildfires
China Hosts Major Security Meeting
Chinese Police Successfully Recover Family's Savings from Livestream Purchases
Germany Marks a Decade Since Migrant Wave with Divisions, Success Stories, and Political Shifts
Liverpool Defeat Arsenal 1–0 with Szoboszlai Free-Kick to Stay Top of Premier League
Prince Harry and King Charles to Meet in First Reunion After 20 Months
Chinese Stock Market Rally Fueled by Domestic Investors
Israeli Airstrike in Yemen Kills Houthi Prime Minister
Ukrainian Nationalist Politician Andriy Parubiy Assassinated in Lviv
Corporate America Cuts Middle Management as Bosses Take On Triple the Workload
Parents Sue OpenAI After Teen’s Death, Alleging ChatGPT Encouraged Suicide
Amazon Faces Lawsuit Over 'Buy' Label on Digital Streaming Content
Federal Reserve Independence Questioned Amid Trump’s Push to Reshape Central Bank
British Politics Faces Tumultuous Autumn After Summer of Rebellions and Rising Farage Momentum
US Appeals Court Rules Against Most Trump-Era Tariffs
UK Sought Broad Access to Apple Users’ Data, Court Filing Reveals
UK Bank Shares Dive Over Potential Tax on Sector
Germany’s Auto Industry Sheds 51,500 Jobs in First Half of 2025 Amid Deepening Crisis
Bruce Willis Relocated Due to Advanced Dementia
French and Korean Nuclear Majors Clash As EU Launches Foreign Subsidy Probe
EU Stands Firm on Digital Rules as Trump Warns of Retaliation
Getting Ready for the 3rd Time in Its History, Germany Approves Voluntary Military Service for Teenagers
Argentine President Javier Milei Evacuated After Stones Thrown During Campaign Event
Denmark Confronts U.S. Diplomat Over Covert Trump-Linked Influence in Greenland
Starmer Should Back Away from ECHR, Says Jack Straw
Trump Demands RICO Charges Against George Soros and Son for Funding Violent Protests
Taylor Swift Announces Engagement to NFL Star Travis Kelce
France May Need IMF Bailout, Warns Finance Minister
Chinese AI Chipmaker Cambricon Posts Record Profit as Beijing Pushes Pivot from Nvidia
After the Shock of Defeat, Iranians Yearn for Change
Ukraine Finally Allows Young Men Aged Eighteen to Twenty-Two to Leave the Country
The Porn Remains, Privacy Disappears: How Britain Broke the Internet in Ten Days
YouTube Altered Content by Artificial Intelligence – Without Permission
Welcome to The Definition of Insanity: Germany Edition
Just a reminder, this is Michael Jackson's daughter, Paris.
Spotify’s Strange Move: The Feature Nobody Asked For – Returns
Manhunt in Australia: Armed Anti-Government Suspect Kills Police Officers Sent to Arrest Him
China Launches World’s Most Powerful Neutrino Detector
How Beijing-Linked Networks Shape Elections in New York City
Ukrainian Refugee Iryna Zarutska Fled War To US, Stabbed To Death
Elon Musk Sues Apple and OpenAI Over Alleged App Store Monopoly
2 Australian Police Shot Dead In Encounter In Rural Victoria State
Vietnam Evacuates Hundreds of Thousands as Typhoon Kajiki Strikes; China’s Sanya Shuts Down
UK Government Delays Decision on China’s Proposed London Embassy Amid Concerns Over Redacted Plans
A 150-Year Tradition to Be Abolished? Uproar Over the Popular Central Park Attraction
×