Binance banned from operating in the UK by FCA

The world's biggest crypto-exchange, Binance has been banned from operating in the UK, the latest sign of a growing crackdown on the crypto market

Binance, the world's biggest crypto-currency exchange, has been banned by the UK's financial regulator, the Financial Conduct Authority (FCA). The company was told by the FCA to stop 'any regulated activity' in the UK.

The FCA also issued a consumer warning about Binance.com, advising people to be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products.

Binance said the FCA notice would have no "direct impact" on the services it provides from its website Binance.com.

The FCA has required all firms offering cryptocurrency-related services to register since January and show they comply with anti-money laundering rules. Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.

“Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.

“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK,” The FCA said. 

 

Scrutiny of Binance

 

Binance has already had issues in other countries. In Germany, this past April, financial regulators warned Binance that it would incur fines for offering digital tokens that track publicly traded companies like Microsoft and Apple. Binance was selling these tokens without publishing an investor prospectus, as required by law—a violation that could invite a penalty of 5 million euros ($6 million).

Last month, Bloomberg reported that US officials who probe money laundering and tax offences had sought information from individuals with insight into Binance's business. 

Most recently, Binance 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. This past week also, Japan's Financial Services Agency (FSA) warned Binance for the second time in three years that it is operating in the country without permission.


Regulators globally are taking a greater interest in cryptocurrencies and products linked to them. They are cracking down on cryptoassets amid fears they contribute to fraud and money laundering, and are also concerned that investors are at risk of big losses.

Share

Featured Articles

Why Web3 payment services will overcome legacy limitations

Mark Smargon, founder and CEO of Fuse, discusses how Web3 will transform the payments space and overcome financial legacy limitations

Interview: We asked a chatbot what it thinks about chatbots

We interviewed ChatGPT, the text-based chatbot taking the internet by storm, about the future of artificial intelligence (AI) in banking and finance

The challenges of address data in cross-border payments

A truly global solution is critical to meeting cross-border needs at scale, writes Loqate, a leading developer of global address verification solutions

Top 10 fintech disruptions to watch out for in 2023

Financial Services (FinServ)

PBF CEO, Morgan McKenney on blockchain, DeFi & tokenization

Crypto

UAE-based BNPL fintech Tabby secures $58mn in Series C round

Digital Payments