Binance Banned in City Watchdog Crackdown on Major Cryptocurrency Exchange

Binance Banned in City Watchdog Crackdown on Major Cryptocurrency Exchange

The financial regulator has banned one of the world’s largest cryptocurrency exchanges from operating in the UK, but has not explained its reasons.

The Financial Conduct Authority (FCA) announced this weekend that Binance Markets Ltd, Binance’s only UK regulated entity, “shall not, without the prior written consent of the FCA, conduct regulated activities … with immediate effect.”

The watchdog also issued a warning to consumers regarding Binance Markets and the Binance Group at large.

Although it gave no explanation for this decision, the FCA asked all companies offering cryptocurrency-the services linked to registering since January and proving that they comply with the rules against money laundering.

Bank of England Governor Andrew Bailey has previously warned that people investing in crypto products should be prepared to lose all of their money

Earlier this month, he said only five companies had registered and the majority of operators were not yet in compliance.

Binance, which was founded in China, announced in June last year that it had purchased an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros. .

But he said in a statement on Sunday that Binance Markets was not yet using its regulatory clearances and that the FCA’s decision would not impact the services offered on its website.

A spokesperson told Reuters news agency: “We take a collaborative approach in working with regulators and we take our compliance obligations very seriously.

“We actively keep abreast of changes in policies, rules and laws in this new space. “

The FCA said: “Due to the imposition of requirements by the FCA, Binance Markets Limited is currently not permitted to engage in regulated activities without the prior written consent of the FCA.

“No other entity in the Binance group holds any form of authorization, registration or license in the UK to conduct regulated activity in the UK. “

As part of a broader, non-specific investment warning, his statement added: “Always be careful if you are contacted out of the blue, pressured into investing quickly, or promised returns that seem too good to be true. “

The FCA told Binance that by June 30, it must post a notice stating, “BINANCE MARKETS LIMITED IS NOT AUTHORIZED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” on its website and social media.

FCA oversees crypto-related services

Although cryptocurrency trading is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives requires authorization.

The UK isn’t the only one watching Binance, with Japan taking similar action last Friday.

Politicians and regulators around the world are more interested in cryptocurrencies and the products related to them.

Bank of England Governor Andrew Bailey has previously warned buyers they should be prepared to lose all their money.


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