Binance cryptocurrency exchange on the censored KNF

Polish Financial Supervision Authority warns against the company Binance Markets Limited. It is not a cryptocurrency exchange, but a separate company that was supposed to operate in Europe. So what is this all about? It seems that the KNF itself does not know, but it repeats the warnings of British and German regulators.

The Polish Financial Supervision Authority (KNF) explicitly admits that its warning is the result of earlier messages from other financial regulators from European countries. In the last days before a subsidiary Binance warned the German BAFIN and the British FCA.

The KNF's statement does not directly say that we can be deceived by using Binance, but it is part of the warning against risk common in the narrative of Polish bankers "Losing most of the funds", which is in fact a warning against high volatility on the cryptocurrency market, which even the least smart investors are aware of ...

It started with the FCA

The British financial market supervisor launched an avalanche of warnings against the Binance stock exchange at the end of June Financial Conduct Authority (FCA). It then prohibited Binance Markets Limited, part of the Binance Group, from advertising in the UK. She had until June 30 to remove all advertisements and all information about financial promotions.

However, the order was in line with the guidelines that also apply to, inter alia, Forex market and are a normal practice that aims to make novice investors aware especially that buying cryptocurrencies, currency pairs or stock index contracts is not a bank deposit, but a higher risk investment, especially if you use financial leverage. 

KNF: the cryptocurrency market is not regulated

Similar warnings were issued by the German BAFIN, and even the one operating in the Cayman Islands TOP and SEC from Thailand. The KNF did not want to be left behind. However, we will not find in the communication anything that we do not know for a long time. The KNF writes about the risk, the lack of KNF supervision and warnings from other regulators.

- Binance Markets Limited's business is brokerage in the exchange of cryptocurrencies and crypto assets. As a rule, this market is neither regulated nor subject to supervision by the Polish Financial Supervision Authority. However, in view of the protection of financial market participants and warnings of foreign supervisory authorities, the PFSA Office recommends special caution when using the services of entities from the Binance group and when trading cryptocurrencies and crypto assets, as this may involve a significant risk that may result in the loss of funds. - we read in the statement of the Polish Financial Supervision Authority on Binance.

Alerts will interfere with Binance's work?

Although the statement of the Polish Financial Supervision Authority is very general - as well as the warnings of its European counterparts - Binance, as usual, takes the matter very seriously. The world's largest cryptocurrency exchange has temporarily suspended SEPA transfers in EUR, although you can still buy cryptocurrencies without any problems using card payments (also in PLN). The statistics quoted once by the Binance exchange show that over 90% of individual customers buy cryptocurrencies with a card, so the suspension of transfers is more a sign of a conciliatory move than a real loss for Binance. 

The cryptocurrency exchange Binance has already informed customers that SEPA transfers in euro have been suspended indefinitely: 

“Due to events beyond our control, we are temporarily suspending EUR deposits via SEPA from 10 a.m. CET on July 7, 2021 ”. 

The announcement was made shortly after UK Barclays announced it would not be processing customer payments to Binance.

So it seems that the war between traditional banking and the world of digital currencies has just moved to a new front in the fight for customers. Who will win it? Ideally, it would be without casualties, but history has shown more than once that the more modern solutions sooner or later replace the old ones, even if the "horse owners" have a lot of money and influence to fight the railroad fiercely at first ...