Binance Group’s cryptocurrency exchange, the world’s largest, has been banned by the UK’s financial regulator.
The Financial Conduct Authority (FCA) ruled the crypto firm is officially banned from performing any “regulated activity” in the UK.
In a further blow to the company, the FCA also cautioned consumers against Binance.com, warning people to be wary of adverts promising high returns on cryptoasset investments.
On its part, Binance has said the development would have no “direct impact” on the services it provides from Binance.com.
Despite the ruling, no impact is expected on UK residents using the website to purchase and sell cryptocurrencies since it is not a UK-based company. While trading cryptocurrencies is not directly regulated in the UK, other related activities — such as selling derivatives — do require approval.
Despite the non regulation of crypto trading, the FCA requires exchanges to register with the authority. Binance has failed to do so, therefore the FCA is not allowing the exchange to operate in the UK.
Binance.com is an online centralised exchange offering a wide range of financial products and services, such as the purchase and trade of digital currencies, including digital wallets, futures, securities, savings accounts and lending.
Binance Group is now based in the Cayman Islands and Binance Markets Limited is an affiliate firm based in London. In 2018, amid much fanfare, Binance had announced it would be moving to Malta after the country enacted laws to regulate the crypto market. It later announced that it was no longer seeking a licence to operate from Malta.
The FCA cautioned that Binance Markets Limited is not permitted to carry out regulated activities in the UK without prior written consent and has until Wednesday to comply with the ruling.
It also stressed that no entity in the Binance Group holds authorisation, registration or licence to conduct regulated activities in the UK.
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