Breaking News: The United Kingdom bans Binance Cryptocurrency Exchange
Are you a crytocurrency trader with Binance? If yes then know that the United Kingdom’s Financial Conduct Authority (FCA), which is the financial “police” of the country, has ordered Binance Exchange, which is one of the world’s biggest cryptocurrency exchanges, to stop all regulated activities in the country. See more details below
The action taken by FCA is one of the most significant moves any global regulator has made against Binance Exchange. Binance Exchange has until Wednesday evening to confirm it has complied with the demands of the FCA and remove all its advertising.
The FCA also this weekend issued a consumer warning against both the Binance holdings company and Binance Markets Limited, which is a London-based affiliate that is controlled by CEO, Changpeng Zhao and is overseen by the UK regulator.
Why the ban on Binance?
The FCA stated that Binance Markets Limited, which was established a year ago by the parent company to launch a UK-focused exchange, Binance UK, is not approved under the FCA’s cryptocurrency registration regime, which is required for UK groups offering digital asset services.
The FCA stated, “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 authorisation, registration or licence to conduct a regulated activity in the UK.”
Further to the order from the FCA, the regulator ordered Binance to display on its website that, “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK.”
Binance Markets Limited had permission from the FCA to provide consumers with investment services in traditional currencies, something Binance achieved by purchasing a financial company that was already registered with the regulator. The transaction was approved by the FCA last June, according to public documents.