Cryptocurrencies were broadly higher on Tuesday morning, continuing to recover from an earlier slump, despite more regulatory action.
Bitcoin (BTC-USD) was up 1.6%, trading at $35,249 ($25,433). Despite recovering from a sell off in which its price fell to below $30,000, it still remains far away from its all-time high of $63,000 from earlier in the year.
Ethereum (ETH-USD), the world’s second largest cryptocurrency, was up 8%, trading at $2,158.
Cryptos had slumped amid news of regulatory crackdown in China, but since then they have been rising steadily higher. They remain unfazed by news that Britain’s financial watchdog issued a warning to consumers that one of the world’s largest bitcoin exchanges is not permitted to undertake regulated activities in the UK.
Over the weekend the Financial Conduct Authority (FCA) ordered Binance Markets to remove all advertising and financial promotions by 30 June.
The FT reported that Binance customers are now not able to withdraw or deposit pounds using Faster Payments, one of the main UK payments systems. Binance said on its website the platform was suspended for maintenance
“The lack of access to Faster Payments represented a significant curb on UK clients’ abilities to move money from the exchange directly into their bank accounts,” FT reported.
Mati Greenspan, CEO of Quantum Economics, clarified that Binance has not been banned from the UK, and the company is still free to offer spot crypto trading in the country.
He said Britons are still free to buy, sell, and hold crypto on the platform but the FCA has issued an enforcement action against Binance for offering complex products where they shouldn’t have.
“Investors see the crackdown as a sign that the crypto markets are maturing, and that the company will have to accelerate its process of becoming a regulated exchange, which will likely lead to increased trust among crypto traders,” said Naeem Aslam, chief market analyst at Ava Trade.
He also pointed out that despite tighter controls imposed by global financial regulators, crypto investments in India, the world’s largest democracy grew from $200m to nearly $40bn in a year.
“Currently, 15 million people in India trade digital currencies, and the rise in investments demonstrates bitcoin’s potential to reach new heights.”
Meanwhile Greenspan also pointed out that due to the mining crackdown in China, bitcoin’s hash rate is now at its lowest level in two years. The hash rate is a measuring unit of the processing power of the bitcoin network.
“There’s still more than enough hash power to keep the network safe and secure, and there’s no reason to think that any of this will have a significant impact on market pricing,” he said.
But he added that anyone sending bitcoin across the network should be prepared to wait longer than usual.
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