Binance fallout sees demise of European crypto exchange in Jersey

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Binance fallout sees demise of European crypto exchange in Jersey

Binance Jersey, which is part of the Cayman Islands registered Binance Group, has "ceased operations", according to a notice posted on its crown dependency island website.

The statement told visitors to the site that "The Binance Jersey crypto currency exchange is now closed" and added at the end "The Binance Group extends its gratitude to all clients of Binance Jersey for their loyal support, Best wishes, The Binance Jersey Team."

This brings to a close one of Digital Jersey's jewels in the crown for the island with Binance Markets Limited having previously committed in 2019 to create up to 40 jobs with its European Exchange in Jersey.

More general reaction to the UK regulator Financial Conduct Authority's warning to consumers that Binance Markets Limited is not permitted to undertake regulated activities in the UK has flooded in from across the financial services industry.

The Binance Jersey crypto currency exchange is now closed."

The FCA had said in the brief statement that Binance Markets Limited was not permitted to undertake any regulated activity in the UK and that the firm is part of a wider Group (Binance Group).

UK based money app Ziglu, which was created by Mark Hipperson, one of the founders of Starling Bank, called on the UK retail crypto market to review practices and ensure it meets the highest standards possible in terms of transparency and being clear on the risks involved from investing in cryptocurrencies.

Hipperson, founder and CEO of Ziglu said: "Our research shows cryptocurrencies are becoming increasingly mainstream.

Given this, it is imperative for the industry to review its marketing activity to ensure that it is not misleading and that it appropriately highlights the potential risks involved in investing in cryptocurrencies."

While analysis of trades on blockchain-based derivatives trading platform CloseCross revealed that despite the FCA's crackdown on Binance, UK traders continued to be confident about the price of Bitcoin and Ethereum.

CloseCross CEO, Vaibhav Kadikar, said: "In recent weeks, Bitcoin and Ethereum have seen significant falls in their valuations, however, we could interpret that many traders are predicting that the bulk of this correction is over, and we will start to see prices rises."

Between 26th June 2021, when the FCA made its announcement, and midday 28 June 2021 around 3 out of 4 of Ethereum and Bitcoin trades on the CloseCross platform are for the cryptocurrency to remain stable or slightly increase in value. Only 25% are predicting a fall in value."