Binance Platform Banned, Bitcoin Next

Has the Battle Against Cryptocurrency Just begun?
In this photo illustration, Binance logo of a cryptocurrency exchange is seen on a smartphone screen with the Financial Conduct Authority (FCA) logo in the background. (Getty)

The cryptocurrency world has once again received a blow in the face. This time not from China but from Britain, which decided to ban Binance Group from operating in the country.

The Financial Conduct Authority (FCA) has ruled that Binance, the world’s biggest cryptocurrency exchange, cannot conduct any “regulated activity” in the United Kingdom.

According to media sources, Canada and Japan will soon take a similar approach against the platform.

Britain, meanwhile, said no entity in the Group holds any form of authorization, registration or license to operate in the UK, adding that it is potentially being used in money laundering and other illegal activities.

This is not the first time that the platform has been implicated in money laundering charges and in engaging individuals in an unsecured digital world.

The United States had previously taken legal measures to investigate into the platform’s trading into future contracts. The US government also accused Binance of being involved in laundering criminals’ funds.

So far, no evidence on the ground proves the Group’s involvement in any criminal act.

It is noteworthy that Chainalysis issued a report in 2019 saying that 27.5% of all illicit bitcoin—bitcoin that went from criminal entities to exchanges—was received by Binance.

 

Bitcoin Hysteria .. Drums of War Beat

After the hype resulting from the recent news on Binance, many Bitcoin users said the step taken aims to undermine the individual sovereignty fostered by the cryptocurrency world through government authorities.

It could be described as a silent war or the stage of preparing for war. The drums of war against Bitcoin are beating from several aspects. It is impossible to exclude what Binance is currently facing from the fact that Bitcoin is gradually taking over the world as an alternative to paper cash and gold.

In May, Britain’s advertising regulator banned an advertising campaign telling people “If you’re seeing Bitcoin on the Underground, it’s time to buy.”

A few days earlier, China announced banning bitcoin mining. The government practices daily massive repression against holders of cryptocurrency. Despite China’s siege of the crypto space, it has been recently noticed that many Chinese have shifted to trading in Monero, a privacy coin that is untraceable.

Also, Chinese miners who were forced to shut down their mining data centers on the Chinese territory shipped their over 10-ton mining equipment outside China. Among the new destinations for these miners are Texas, which is classified as pro-Bitcoin, as well as Kazakhstan, which has relatively cheap electric power resources.

In light of the crackdown on Binance, Bitcoin seems to be next. A report published by Zero Hedge website revealed a common concern by China and the US about Bitcoin.

Anti-Bitcoin news has had a major role in dropping its price. However, China’s decision to ban its mining was considered a painful blow and reduced the ability of the Bitcoin network hashrate to process daily transactions, which negatively affected the currency’s value.

The coronavirus pandemic also represented a blow to most world countries’ traditional financial measures. China, the US and the European Union are concerned since every financial support incentive they approve to their people is invested in Bitcoin.

Previous financial incentives led the price of the world’s most popular cryptocurrency to tap fresh highs, climbing to $64,000 in April.

The Bitcoin community was of course ready for this battle. For this reason, the report affirmed that the international crackdown on Bitcoin by major world countries was not surprising.

Bitcoin presents a huge obstacle to China, and this fear is reflected in the discourse of the most prominent Chinese economists. In May, Qu Qiang, who has influence on China’s economic approach, predicted that “We’re all going to die” if bitcoin becomes widely adopted as a currency.

His remarks is correct in terms of his fear of the influence of the currency that attracts the world’s smartest human capacities. When asked about the kind of a systemic shock it will give to the current financial system if bitcoin is widely used in China or the rest of the world, Qiang said it is “the worst scenario.”

Bitcoin actually provides a secure ground and promotes individualism, which is completely incompatible with the Chinese regime, which ensures it intervenes in people’s affairs in all aspects of life.

During a conference on Bitcoin, Kevin O’Leary said one trillion dollars will soon be invested in the cryptocurrency world and investors are eagerly awaiting the right moment to enter the market.

The situation indicates that the drums of war are beating. The cryptocurrency is slowly turning into a geopolitical event. It is inevitable.

Will Bitcoin result in wars? It is not clear yet. But it will certainly result in an additional oppressing force. Obstacles put to curb people’s ability to access banks or governments’ monitoring of bank accounts will increase.

But what is worth noting here is that investment in Bitcoin grew from $40 million to $200 billion in 2021 from India alone. News from India says a lot about what to expect in the future. The battle has just begun.