UK Bans Operations of Binance, the World's Largest Cryptocurrency Exchange

Sharp Drop in Chinese Mining Equipment Prices
Coin Surges 3500% Following Musk's Tweet Impact

[Asia Economy New York=Correspondent Baek Jong-min, Beijing=Correspondent Jo Young-shin] The UK Financial Conduct Authority (FCA) has banned Binance, the world's largest cryptocurrency exchange, from operating services within the UK. While the ban on mining has severely impacted the prices of used mining rigs in China, some cryptocurrencies have shown an abnormal surge of up to 3500%.

According to CNN on the 27th (local time), the FCA announced on the 26th that Binance has not obtained any authorization to operate in the UK and stated, "Binance cannot conduct business activities without our prior consent." Accordingly, Binance must cease its business activities in the UK by the evening of the 30th.

Cryptocurrency trading is not regulated in the UK, but approval from supervisory authorities is required for the sale of derivatives and related products. The FCA also warned not to be misled by advertisements promising high returns on cryptocurrencies and related products.

Prior to the UK, Japan also announced regulatory measures against Binance's operations. On the 25th, the Japan Financial Services Agency pointed out that Binance is trading with residents in Japan without authorization and similarly stated that it cannot operate in Japan without proper approval.

In China, a large-scale crackdown on cryptocurrencies such as Bitcoin by authorities has caused mining rig prices to plummet. The state-run Global Times reported on the 28th that due to strict enforcement in major cryptocurrency mining regions such as Sichuan Province, the price of mining rigs (based on the S19jPRO-100T model) dropped from 70,000 yuan (approximately 12.23 million KRW) to 30,000 yuan. Under strong regulations, cryptocurrency mining volume in China has decreased by 90%. One miner told the Times in an interview, "If I can sell the mining rigs, I am willing to hand over the machines regardless of the price."

Another miner reported, "There is active movement to relocate mining facilities to Kazakhstan, Russia, North America, and Northern Europe."

Despite ongoing cryptocurrency regulations, some coins surged, attracting attention.

On the 25th, Tesla CEO Elon Musk mentioned on Twitter, "My Shiba Inu will be named ‘Floki’," and the cryptocurrency named Floki surged by 3500% in an instant, according to cryptocurrency media Decrypt.

Shiba Inu, a cryptocurrency mimicking Dogecoin supported by Musk, also surged by 25%.

This content was produced with the assistance of AI translation services.