UK Watchdog Bans Cryptocurrency Exchange Binance
The world’s largest cryptocurrency exchange has been banned from operating in the UK and has until Wednesday to comply with the ruling by the financial watchdog.
The Financial Conduct Authority (FCA) has ruled that the firm cannot conduct any “regulated activity” in the UK.
It also issued a consumer warning about Binance.com, advising people to be wary of adverts promising high returns on cryptoasset investments.
Binance said the FCA notice would have no “direct impact” on the services it provides from its website Binance.com.
Binance’s existing crypto exchange is not UK-based so despite the FCA ruling, there will be no impact on UK residents who use the website to purchase and sell cryptocurrencies.
The FCA does not regulate cryptocurrencies, but requires exchanges to register with them. Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.
The FCA move comes amid pushback from regulators around the world against cryptocurrency platforms.
Binance.com is an online centralized exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts, and even lending.
Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.
Binance was also banned by Japan’s financial watchdog on Friday, when it said that company wasn’t registered to do business in the country.