The UK Bans the Operation of the Binance Cryptocurrency Exchange
The UK Financial Conduct Authority (FCA) has warned Binance, the world's largest cryptocurrency exchange, that it now must stop all regulated work in the country. The financial regulator has also issued a consumer alert about Binance Holding and its subsidiaries.
The regulator claims that Binance Markets Limited is the service provider of Binance.com. It is part of the Binance Group and is not licensed to operate in the UK. Representatives of the crypto exchange said that the FCA warning does not affect the services provided by the Binance.com website. The site representatives noted that Binance Markets Limited is a separate legal entity and does not offer services through the Binance.com website, and has not yet entered the UK market.
Binance is licensed in the UK for consumer transactions in traditional currencies. While the regulator's actions only restrict the activities of the largest crypto exchange, which operated without a license in the country, Binance can restore its activities in the UK if it opens its own licensed division in the country.
The Binance Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.
— Binance (@binance) June 27, 2021
For questions related to BML, please contact compliance@binance.uk. (2/4)
According to sources, the company planned to open a division in the UK that would receive a license for cryptocurrency operations, but withdrew its application in May.
We take a collaborative approach in working with regulators and we take our compliance obligations very seriously.
— Binance (@binance) June 27, 2021
We are actively keeping abreast of changing policies, rules and laws in this new space. (4/4)
The FCA also warned of the dangers of investing in crypto assets. The department notes that most of the companies offering such services are not licensed in the UK, so investors will not be able to contact the financial ombudsman and claim compensation for losses.