UK Banned Binance Cryptocurrency Exchange
UK has banned Binance, Yes you heard me right. The United Kingdom’s financial regulatory body, the Financial Conduct Authority (FCA) has said that Binance cannot conduct any regulated activity and has issued a warning to consumers about the platform, which is coming under growing scrutiny globally.
Binance is a Cayman Islands-domiciled cryptocurrency exchange that provides a platform for trading various cryptocurrencies founded in 2017. As of June 2021, Binance is one of the largest cryptocurrency exchanges in the world in terms of trading volume.
In a notice dated June 25, FCA said Binance Markets Ltd, Binance’s only regulated UK entity, “must not, without the prior written consent of the FCA, carry out any regulated activities… with immediate effect.”
Furthermore, FCA has asked Binance to display a notice stating “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” by 30th June on its website and social media channels.
In order to control money laundering and financing of terrorism, FCA is carrying out its oversight powers over cryptocurrency trade though trading of cryptocurrencies is not directly regulated in Britain but FCA authorisation is required in terms of trading.
To recall, FCA has required all firms offering cryptocurrency-related services to register and show they comply with anti-money laundering rules in January 2021.
The FCA has also issued a consumer warning about Binance.com, specifically to be wary of adverts promising high returns on crypto investments. The ban also prevents Binance from performing any advertising or financial promotions.
Binance has faced similar warnings by SEC and Japan’s Financial Services Agency. A similar warning about the platform was issued to US consumers by regulator the SEC in April while on Friday 25th June, Japan’s Financial Services Agency warned Binance – for the second time in three years – that it is operating there without permission.
In April, Reuters reported that Germany’s financial regulator BaFin said the exchange risked being fined for offering digital tokens without an investor prospectus
British citizens will still be able to access Binance's services in other jurisdictions.
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