Watchdog the听Financial Conduct Authority听has banned the world鈥檚 largest cryptocurrency exchange,听Binance, from performing any regulated activities in the UK.听
Binance鈥檚听services include trading in digital coins, futures, options, stock tokens, savings accounts and even lending.听听
Users of the popular platform can still buy and sell cryptocurrency,听as this is not regulated,听but听products around听cryptoassets听such as听futures听are regulated and covered by the ban.听
In effect, people in the UK are not allowed to use听Binance’s听services to speculate, or bet, on whether the price of, say, Bitcoin goes up or down.听
The FCA also issued a consumer warning about Binance.com, specifically to be wary of adverts promising high returns on crypto听investments.听The ban also prevents听Binance听from performing any advertising or financial promotions.听
A similar warning about the platform was issued听to US consumers by regulator the SEC in April听while on Friday听Japan’s Financial Services Agency warned听Binance听鈥� for the second time in three years 鈥� that it is operating there without permission.听
The FCA said that听Binance听Markets Limited (BML), which is听based in London and听owned by听Cayman Islands-headquartered听Binance听Group, has until Wednesday to comply with听the demands听set out in its ruling.听
This includes听publishing a notice on its website stating:听鈥淏INANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK.鈥� The firm also must 鈥渟ecure and preserve all records and/or information… relating to all UK consumers鈥澨齠rom its systems.听
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When听deciding whether to grant a licence, the FCA looks at a company鈥檚听controls and practices to prevent money laundering and financing of terrorism.听听
鈥淏inance听Markets Limited is not permitted to undertake any regulated activity in the UK,鈥� the FCA stated. It added: 鈥淣o other entity in the听Binance听Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.鈥�听
BML had attempted to become a registered cryptocurrency听company听but the application was dropped recently after engagement with the FCA.听
A听Binance听spokesman said:听“BML is a separate legal entity and does not offer any products or services via the听Binance.com website.听
鈥淭he听Binance听Group acquired BML May 2020 and has not yet launched its UK business or used its FCA regulatory permissions.听
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.”听
Trading volumes on the platform reached an astonishing $1.5 trillion in May.
Cryptocurrency