Dont Believe the Bitcoin Bounce. The U.K.s Binance Restrictions Are Bad News for Cryptocurrencies. – Barron’s

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Dont believe the Bitcoin bounce. The U.K.s decision to block Binance from engaging in regulated activity in that country is bad news for cryptocurrencies.

The U.K. government announced that Binance, a crypto exchange, is not allowed to engage in regulated activities and must make that clear on its website. Its not a banBinance can still offer crypto trading on its websitebut a limit placed on what it can do.

In an email to The Wall Street Journal, U.K. regulators highlighted that a significantly high number of crypto businesses are not meeting the required standards under money-laundering regulations as the reason for its actions.

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Thats not a surprise. Traditional banks and brokers are required to check on the legitimacy of their clients. Ultimately, crypto brokers and exchanges might have to do the same, require them to know their clients, something that isnt really part of the crypto ethos.

Bitcoin is rallying, up almost 5% Monday. The gain, however, doesnt matter much. It gets the worlds leading crypto to where it was on Thursday, before a 7.8% drop.

Bitcoin remains stuck at the lower end of its $30,000 to $40,000 trading range its been bouncing around in for more than a month.

It might have trouble gaining momentum and breaking out as global governments take a closer look at all things crypto.

Al Root

*** In this weeks Barrons Streetwise podcast, columnist Jack Hough talks with Pfizer CEO Albert Bourla about vaccines, cancer treatments, rising drug prices, and more. Listen here.

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Whats Next: The listings illustrate the renewed vigor of the IPO market as investors try to take advantage of rising markets and generous valuations.

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The U.S. military said Sunday it had carried out defensive precision airstrikes against Iran-backed militia groups in the Iraq-Syria border region.

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A MarketWatch correspondent will answer this question soon. In the meantime, send any questions you would like answered to thebarronsdaily@barrons.com.

Newsletter edited by Liz Moyer, Stacy Ozol, Matt Bemer, Ben Levisohn

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Dont Believe the Bitcoin Bounce. The U.K.s Binance Restrictions Are Bad News for Cryptocurrencies. - Barron's