The Financial Conduct Authority (FCA) has ruled that Binance, the world’s largest cryptocurrency exchange, cannot conduct any “regulated activity” in the United Kingdom.
According to a notice issued on June 25, the FCA said: “Binance Markets Ltd, which is Binance’s only regulated UK entity, “must not, without the prior written consent of the FCA, carry out any regulated activities … with immediate effect.”
The regulator also issued a consumer warning about Binance.com, urging investors and traders to be wary of adverts promising high returns on crypto asset investments.
It stressed that no entity in the Binance Group holds any form of authorisation, registration or licence to conduct regulated activity in the UK.
The move by the FCA is coming amid arrays of pushback from countries’ financial regulators around the world against the adoption of the digital currencies as a legal tender, as well as cryptocurrency platforms operations.
The FCA does not regulate cryptocurrencies, but it requires exchange platforms to register with them.
However, Binance has not registered with the FCA and therefore is not allowed to operate exchange activities in the UK.
Binance in its response said; “the FCA notice would have no “direct impact” on the services it provides from its website — Binance.com.
“Our relationship with our users has not changed,” it added.
The cryptocurrency trading firm said; “We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.”
Binance.com is an online centralised exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending.
Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.
Support PREMIUM TIMES' journalism of integrity and credibility
Good journalism costs a lot of money. Yet only good journalism can ensure the possibility of a good society, an accountable democracy, and a transparent government.
For continued free access to the best investigative journalism in the country we ask you to consider making a modest support to this noble endeavour.
By contributing to PREMIUM TIMES, you are helping to sustain a journalism of relevance and ensuring it remains free and available to all.
TEXT AD: To place an advert here . Call Willie - +2348098788999