Crypto Exchange Binance Banned From UK
The Financial Conduct Authority (FCA) has ruled that Binance cannot conduct any “regulated activity” within the United Kingdom.
The FCA has also issued a consumer warning against Binance.com. The financial regulator has advised people to be cautious of advertisements that promise high returns on crypto asset investments. The move comes as part of a pushback from global regulators against crypto-currency platforms.
Binance is an online exchange where users can trade cryptocurrencies. The site offers its users a range of financial services and products and provides each trader with a crypto wallet where they can store digital funds. The online exchange also aids traders in their investment decisions through supporting programmes.
Binance Group was initially based in China but has since relocated to the Cayman Islands due to China’s increased regulation of cryptocurrency. Binance Markets Limited (BML_ is an affiliate firm of Binance, currently based in London.
The FCA has said that BML is not currently permitted to undertake any regulated activities within the UK without prior written consent by the FCA. The firm has been given until Wednesday to comply with the ruling, with the FCA also stating that no entity of the Binance Group has the authority, registration, or licence to conduct regulated activity in the country.
The FCA does not regulate cryptocurrencies, but it does regulate crypto assets. To advertise or sell cryptocurrency products in the UK, companies must be authorised by the financial regulator.