FCA bans world’s largest crypto exchange Binance – Citywire Financial Publishers

fca-bans-world’s-largest-crypto-exchange-binance-–-citywire-financial-publishers

The Financial Conduct Authority (FCA) has banned Binance, the world’s biggest cryptocurrency exchange, from conducting any regulated activity in the UK.

The move comes as regulators and governments around the world put increased pressure on similar platforms.

Binance is an online exchange offering users financial products, including purchasing and trading digital currencies.

In a note on Friday, the City watchdog said London-based affiliate Binance Markets must not ‘without the prior written consent of the FCA, carry out any regulated activities’ and gave it until 30 June to stop any live advertising campaigns on its website and social channels, saying: ‘Binance Markets Limited is not permitted to undertake any regulated activity in the UK’.

At the same time, the FCA published a warning altering consumers to the ban.

‘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,’ it added.

‘No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.’

Binance said in a statement that the ban on its UK affiliate would not impact services offered on its Binance.com website.

Although the FCA does not regulate cryptoassets such as bitcoin or ether, it regulates certain cryptoasset derivatives such as futures contracts, contracts for difference and options, as well as those cryptoassets it considers ‘securities’.

Last week, Japan’s regulator said Binance was operating in the country illegally, while in April, Germany’s financial watchdog said the exchange could be fined for offering digital tokens without an investor prospectus.

Meanwhile, the US Securities and Exchange Commission is probing one of the firm’s entities, Binance Holdings, over concerns surrounding money laundering and tax offences, according to Bloomberg.

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