Wednesday, September 28, 2022

Binance Mandated to Halt All Operations in Israel

The world’s largest exchange, Binance, was asked to stop all its trade activities in Israel. This mandate became necessary after the cryptocurrency exchange firm was implored by the Capital Market Authority in Israel to provide clarification on its operations in the country but no concrete response was obtained.

According to Globes, a popular Israeli newsroom, the Authority who is saddled with the responsibility of handing out authorizations to crypto ventures had earlier reached out to Binance to provide its license of operation, and clarification on the nature of service it delivers to Israelis.

Based on the Authority’s record, no application has been submitted by Binance toward acquiring an operational license from Israel’s regulatory body. Up to 200,000 Israelis have been noted to use the exchange platform because of its speed.

Nonetheless, one major challenge has been getting exchange firms that do not acknowledge the rules and structures of Israel’s regulatory body to influence investors to plunge their funds back into the country’s economy. Binance, from the Capital Market Regulatory Authority’s report, seems to be acting like one of such exchanges.

In response to Binance’s silence over the topic, the Capital Market Authority said there has been a final note to Binance to stop operating in Israel, put an end to all trading, and focus on its acquisition of a license as activities will not commence until it is given.

Binance Authenticity Consistently Challenged

Changpeng Zhao, CEO, and founder of Binance mentioned how he wishes that the exchange works with local regulators to create more outlets in other states. Many other countries are still skeptical about Binance and they are trying to tread carefully in dealing with the exchange.

The Binance platform has been experiencing complications in trading with the local regulators in several regions. A few weeks ago, Binance operations were prohibited in the United Kingdom because of its lack of license needed for activities. 

The Financial Conduct Authority (FCA) has also expressed its fear over Binance’s new business operations with UK payment firm, Paysafe. Although the FCA has no power to intervene in the Binance-Paysafe deal, it still wishes that the exchange quit all its financial operations in the country.

Victoria Nye
A Blockchain columnist who is enthusiastic about developing a network interface between the real world and the cryptosphere.

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