British regulator bans Binance operations in the UK

The United Kingdom’s financial control body, known as Financial Conduct Authority (FCA) prohibited Binance Markets Limited from carrying out any financial activity that requires regulation in the country, without its authorization.

The information was published on June 26, 2021 on the website of the regulatory body through a letter in which the FCA reports the following:

( … ) due to the imposition of requirements by the FCA, Binance Markets Limited is not currently authorized to conduct any regulated activity without the prior written consent of the FCA.

The statement of the British body also pointed out that no other Binance Group entity has any type of authorization, registration or licence in the United Kingdom to carry out regulated activities in that country. In addition, he warned that the Binance Group appears to be offering UK customers a range of products and services through a website,

It is worth remembering that the exchange platform recently requested to become a registered cryptocurrency company, as required of British institutions that offer digital asset services. However, the exchange it withdrew that request last month due to strict criteria of the regulatory body when approving practices to prevent money laundering and the financing of terrorism.

Among the actions undertaken by the FCA, the regulator has established that Binance has until next Wednesday 30 June to post on its website that it does not have its permission to carry out regulated activities in the UK.

In this way it must “secure and preserve all records and / or information (…) relating to all customers in the country from its systems” and put an end to any type of advertising and financial promotions.

In 2020, the FCA unveiled its new regulation prohibiting the sale of cryptocurrency derivatives such as options, futures, and publicly traded notes. Source: Binance /

Not the first warning Binance receives

The danger of trading crypto assets had been warned in advance by the FCA. Binance was established a year ago as part of a larger group to launch a platform in the UK, Binance UK. In order to be able to operate in that country, the platform bought a financial company that was already registered with the regulator. The operation was approved by the FCA last June.

This is not the first time Binance has received a warning for offering products and services to citizens without permission, as Crypto News reported on October 7, 2020. On that date, the FCA stated that its new regulation prohibited the sale of derivatives such as options, futures and publicly traded notes “which refer to transferable crypto assets not regulated by companies operating in or from the United Kingdom.”

The regulator’s warning seems contradictory, as Binance he has helped UK police investigate a $ 50 million fraud. The fact was published last June 24 in the blog of the exchange, highlighting that he had received a letter of praise from the Regional Organized Crime Unit Southeast of the United Kingdom.

As reported by this media, the main cryptocurrency exchange by volume of operations assured that it had offered its support to the British police force. Thus, they managed to arrest to a cybercriminal who sold phishing tools that resulted in the theft of millions of pounds.

The FCA notice adds another warning made by Japan this week, and to the one made last April by the financial regulator of Germany, BaFin. The platform is also under scrutiny by regulators in other countries, including the United States. Binance also announced last Friday the closure of its operations in Ontario (Canada), without specifying a specific reason.

Recent Articles

Related Stories