28 Jun 2021 Morgan Hayze
FCA Bans Binance From Operating In The UK
United Kingdom’s Financial Conduct Authority (FCA) made an unprecedented ban on the world’s leading exchange, Binance. The regulatory authority stopped Binance from performing any regulated activities in the UK, including trading in digital coins, futures, options, stock tokens, savings accounts, and even lending.
However, Binance users can still buy and sell cryptocurrency, as financial laws do not regulate this kind of activity, but products around crypto assets such as futures are regulated and covered by the ban.
This is not the first time Binance is receiving bans and warnings. In April, regulators from the SEC issued warning about the platform to US consumers, while on Friday Japan’s Financial Services Agency warned Binance for the second time in three years that it is operating there without a license.
UK’s FCA gave Binance Markets Limited (BML) - based in London and owned by Cayman Islands-headquartered Binance Group, to comply with current regulations until June 30th.
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK,” the FCA stated, adding that “no other entity in the Binance Group holds any form of UK authorization, registration or license to conduct a regulated activity in the UK.”
However, a Binance spokesman responded to the ban, emphasizing that “BML is a separate legal entity and does not offer any products or services via the Binance.com website.”
“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.” The spokesman added.
Meanwhile, despite Binance hitting as much as $1.5 trillion monthly trading volumes, Binance’s exposure is shrinking, due to regulatory havoc. Binance decided to pull the plug on crypto operations from Ontario, Canada.
“Regrettably, Binance can no longer continue to service Ontario-based users,” the exchange announced.
Also, Binance urged its Ontario clients to close their Binance accounts by December 31, 2021. The reason sits behind Ontario’s Securities Commission (OSC) that posted a notice to several crypto exchanges for violations of the local securities laws.
Binance’s sudden move, however, puts the exchange in a foggy situation whether or not it has taken the decision after consulting with the OSC, or it came as a precautionary measure.
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