UK financial regulator bans world’s largest cryptocurrency exchange Business and Economy News

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The UK has banned Binance Markets from any regulated business in the country, expanding global crackdown on cryptocurrencies.

The British financial regulator has said that Binance, one of the largest cryptocurrency exchanges in the world, cannot carry out any regulated activity and has issued a warning to consumers about the platform, which is under increasing global scrutiny.

In a notice dated June 25, the Financial Conduct Authority (FCA) said Binance Markets Ltd, Binance’s sole regulated entity in the UK, “must not perform, without the prior written consent of the FCA, no regulated activity … with immediate effect “.

It also issued a warning to consumers about Binance Markets and Binance’s wider group.

Binance said in a statement that Binance Markets, which it acquired in 2020, was not yet using its regulatory permits, and that the FCA’s decision would not affect the services offered on its website: Binance.com.

“We take a collaborative approach to working with regulators and take our compliance obligations very seriously. We keep abreast of changing policies, rules and laws in this new space, ”a spokesman said.

Binance announced in June last year that it had bought an FCA-regulated entity and would use it to offer free and euro-denominated cryptocurrency trading services.

The move expands regulatory repression in the cryptocurrency sector amid concerns about its potential involvement in money laundering and fraud.

Bitcoin gained on Monday, trading 5.1 percent higher at $ 35,309 as of 7:19 a.m. in Hong Kong.

Cryptographic cries often interpret harsh regulatory action as a signal that the market is maturing and say the potential for a more robust security network can call for more investors to enter the space.

Intensify supervision

Although the trading of cryptocurrencies is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives requires authorization.

The FCA has informed Binance that before June 30 it must display a notice stating that “BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE KINGDOM” on its website and social media channels.

It must also protect and maintain all records relating to UK consumers and report to the FCA on 2 July.

The regulator did not explain why it had taken such action.

British citizens will still be able to access Binance services in other jurisdictions.

The FCA is stepping up its oversight of the cryptocurrency trade, which has grown in popularity in Britain along with other countries around the world.

Since January, the FCA has required all companies offering cryptocurrency-related services to register and demonstrate compliance with anti-money laundering regulations. However, earlier this month it was said that only five companies had registered and most had not yet complied.

The Japanese regulator said on June 25 that Binance was operating in the country illegally, according to a notice posted on the Japan Financial Services Agency’s website.

Last month, Bloomberg reported that officials from the U.S. Department of Justice and the Internal Revenue Service investigating money laundering and tax crimes had asked for information from people with knowledge about Binance’s business.

In April, German financial regulator BaFin said the exchange runs the risk of being fined for offering digital tokens without an investment brochure.





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