UK’s Financial Regulator Ruled Against Binance
The Financial Conduct Authority (FCA) ruled that Binance can’t conduct any regulated activity in the country. The FCA also issued a consumer warning about Binance.com, advising people to be wary of adverts promising high returns on crypto-asset investments. The regulator is stepping up its oversight of cryptocurrency trading, which gained popularity in the UK and abroad.
The financial regulator’s decision would have no direct impact on the services Binance provides from its website, according to the world’s biggest crypto exchange. The company’s existing crypto exchange is not based in the UK. Hence, despite the FCA ruling, there will be no impact on UK residents. They will be able to use the website to purchase and sell cryptocurrencies.
The Financial Conduct Authority doesn’t regulate cryptocurrencies, but it requires crypto exchanges to register with them. Since January all firms that offer crypto-related services must register with FCA and show they comply with anti-money laundering rules. But this month the FCA said that just five companies registered, and the majority were not yet compliant.
Binance also has not registered with the UK’s financial regulator. So it is not allowed to operate an exchange in the country. The main crypto exchange has until Wednesday to comply with the ruling. The FCA also stressed that no entity in the Binance Group holds any form of authorization, registration, or license to conduct a regulated activity in the country.
The Binance group is currently based in the Cayman Islands, which is a self-governing British Overseas Territory. The Binance Markets Limited is an affiliate firm based in London. The company has multiple entities around the globe and the group was previously based in Malta.
Binance and regulators
The decision made by the FCA comes amid pushback from regulators around the world against cryptocurrency platforms. Binance is no stranger to such challenges. The US Securities and Exchange Commission (SEC) is investigating one of the company’s entities called Binance Holdings. The SEC issued a warning to US consumers in April about the platform. Another of its entities the Binance US is currently one of the biggest crypto exchanges in the US.
Two days ago, the crypto exchange announced it was pulling out of Ontario, Canada after the Ontario Securities Commission (OSC) accused it and several other crypto trading platforms of failing to comply with province regulations.
On Friday, Japan’s Financial Services Agency (FSA) warned Binance for the second time in three years. According to FSA, the crypto exchange is operating in the country without permission.
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