Binance exchange banned by UK watchdog as part of latest cryptocurrency crackdown
- Major cryptocurrency exchange Binance has been banned by the UK’s FCA from operating in the country.
- The digital asset platform now has until the end of the month to confirm that it is following the regulator’s demands.
- Binance stated that the FCA ban would not affect services offered on its main site.
The United Kingdom’s Financial Conduct Authority (FCA) has banned major crypto exchange Binance, stating that the firm is not allowed to conduct any regulated activity following a notice sent out on June 25.
Binance barred from conducting crypto operations in the UK
Popular cryptocurrency exchange platform Binance has been barred from offering certain services in the country.
The regulatory body said in a statement:
Binance Markets Limited is not permitted to undertake any regulated activity in the UK. No other entity in the Binance Group holds any form of UK authorization, registration or license to conduct regulated activity in the UK.
Although the trading of cryptocurrencies is not explicitly regulated in the country, other related activities, including the selling of derivatives, require approval.
The FCA also issued a warning to consumers about Binance Markets and the wider Binance Group. The regulator has told Binance that it has until the end of the month to display a notice warning its users that “Binance Markets Limited is not permitted to undertake any regulated activity in the UK” on its website and social media channels.
Binance is also required to preserve all records of UK consumers and alert the FCA that it has been done by July 2.
While Britain’s financial regulator did not mention the reason for blocking Binance, it noted that an “imposition of requirements” kept the crypto exchange from operating.
The cryptocurrency trading platform announced in a statement that Binance Markets, which was acquired in 2020, did not involve using its regulatory permissions.
The firm further added that the FCA’s ban would not impact services offered on the Binance.com website. Binance Markets Limited is legally separate and has not yet “officially launched” its UK business, according to the firm.
A spokesperson for Binance 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.
In June 2020, Binance stated that it bought an FCA-regulated entity and would use it to offer crypto-related services using pounds and euros.
The FCA is now increasing its oversight of cryptocurrency trading, which has recently gained popularity in the UK and other countries worldwide.
The financial regulator required all firms that offer digital asset-related services to register with the agency and show that they comply with the anti-money laundering rules. Earlier this month, the FCA said that only five firms registered, and most crypto firms were not yet compliant.
The latest crackdown on Binance from the FCA follows the Japanese Financial Services Agency’s statement that the crypto exchange was illegally operating in the country.
Author
Sarah Tran
Independent Analyst
Sarah has closely followed the growth of blockchain technology and its adoption since 2016.
