Cryptocurrencies – FinanceBrokerage
The UK financial regulator has ruled against Binance
The Financial Conduct Authority (FCA) ruled that Binance is not allowed to conduct regulated activities in the country. The FCA also issued a consumer warning on Binance.com advising people to beware of ads that promise high returns on crypto asset investments. The regulator is stepping up its oversight of cryptocurrency trading, which has grown in popularity in the UK and abroad.
According to the world’s largest crypto exchange, the decision by the financial regulator would not have any direct impact on the services that Binance offers via its website. The company’s existing crypto exchange is not based in the UK. Therefore, despite the FCA ruling, there will be no impact on UK residents. You will be able to use the website to buy and sell cryptocurrencies.
The Financial Conduct Authority does not regulate cryptocurrencies, but does require crypto exchanges to register with them. As of January, all companies offering crypto-related services have to register with the FCA and prove that they comply with anti-money laundering regulations. But this month the FCA announced that only five companies have registered and the majority have not yet complied.
Binance has also not registered with the UK Financial Regulator. So it is not allowed to operate an exchange in the country. The most important crypto exchange has until Wednesday to comply with the ruling. The FCA also stressed that no Binance Group company has any form of authorization, registration or license to conduct any regulated activity in the country.
The Binance Group is currently based in the Cayman Islands, a self-governing British overseas territory. The Binance Markets Limited is an affiliate based in London. The company has multiple offices around the world and the group was previously based in Malta.
Binance and regulators
The FCA’s decision comes amid opposition from regulators around the world against cryptocurrency platforms. Binance is no stranger to such challenges. The US Securities and Exchange Commission (SEC) is investigating Binance Holdings. The SEC warned US consumers about the platform in April. Another of their units, Binance US, is currently one of the largest 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 non-compliance with the province’s regulations.
On Friday, the Japanese Financial Services Agency (FSA) warned Binance for the second time in three years. According to the FSA, the crypto exchange operates in the country without a permit.
The UK financial regulator that ruled against Binance first appeared on FinanceBrokerage.