UK Financial Regulator Restricts Binance Crypto Business
Godfrey Benjamin Jun 28, 2021 05:15
The United Kingdom Financial Conduct Authority (FCA) issued a restriction to Binance, requesting Binance Markets Limited to remove all advertising and financial promotions and close the business by the evening of this Wednesday.
The United Kingdom Financial Conduct Authority (FCA) issued a restriction to the country’s crypto savvy exchange platform, requesting Binance Markets Limited to remove all advertising and financial promotions and close the business by the evening of this Wednesday.
Binance Markets Limited, a separate legal entity from the Binance, was banned by the U.K. financial watchdog from operating its business in the country. Per the FCA's update, Binance, the world’s largest global cryptocurrency exchange by trading volume, is not licensed to offer any product to UK consumers unless the platform regains permission from the FCA.
the announcement reads:
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group). Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct a regulated activity in the UK. The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com,”
Binance responded to the latest restrictions on Twitter, said the company "take a collaborative approach in working with regulators and take our compliance obligations very seriously".
The clampdown on the Binance trading platform reflects the harsh stance of the FCA on cryptocurrency-based entities. While the regulator did not offer more context as to why it issued the caution on Binance, it had earlier instructed crypto entities to adhere to its proposed Anti-Money Laundering guidelines.
The FCA is generally warning its cryptocurrency investors to beware of every investment in digital assets. The regulator said the majority of crypto entities are unregulated, and there are risks to consumers by failing to recover their capital in the case of fraud. Nonetheless, the FCA noted that it “regulates certain crypto-asset derivatives (such as futures contracts, contracts for difference and options), as well as those crypto assets we would consider ‘securities’” and drew out a list of authorized service providers in the UK.
Unlike Binance, a US-based cryptocurrency exchange, Gemini has been licensed by the FCA, while BitMEX derivatives exchange is flagged for not being authorized.
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