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UK's Financial Conduct Authority bans Crypto-currency exchange Binance

UK's Financial Conduct Authority bans Crypto-currency exchange Binance
UK's Financial Conduct Authority bans Crypto-currency exchange Binance

The UKs financial watchdog, Financial Conduct Authority (FCA), has reportedly banned Binance, the worlds largest cryptocurrency exchange platform. The authority has ruled that the company cannot perform any regulated activity in the United Kingdom.

According to reports, FCA also released a consumer alert regarding Binance.com, advising users to be careful of advertisements claiming large profits on cryptoasset investments.

Binance.com is a centralized online exchange platform that provides customers a variety of financial services and products, including the trading and buying of various cryptocurrencies, as well as stocks, futures, savings accounts, digital wallets, and lending.

According to the FCA, Binance Group-owned Binance Markets Limited (BML), is not currently authorized to engage in any regulated activity without the prior written approval of FCA. Now, Binance has until Wednesday to adhere to the ruling of FCA.

Meanwhile, the authority does not control cryptocurrencies, but it does control crypto assets. Firms must be approved by the regulation to market or sell such products and services in the United Kingdom.

This implies that residents of the United Kingdom are not permitted to use Binance's services to guess, or wager, upon whether the value of a cryptocurrency, such as Bitcoin, will rise or fall.

However, cryptocurrency expert Colin Stone stated that the Binance website is still permitted to sell or trade cryptocurrencies because it not regulated by the FCA. Hence, anyone from the UK can buy or sell cryptocurrencies at Binance.com.

A spokesperson from Binance stated that the FCA ruling has no direct effect on the services which company offers through Binance.com. BML is a distinct legal entity that does not provide any products or services through the Binance.com website.

The firm's connection with its users had not changed with the company, emphasizing that the spokesperson added that the company takes a collaborative approach in engaging with regulators. Moreover, the company takes its compliance duties extremely seriously.  Binance is actively monitoring evolving policies, norms, and legislation in this new domain.

Source credit: https://www.bbc.com/news/business-57632831

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