UK’s FCA Authorizes Binance Markets Limited (BLM) to Operate in the Country
UK’s financial watchdog, the Financial Conduct Authority, announced on Wednesday that Binance Market Limited (BML), the UK-based entity of Binance, is now authorized to operate in the country for “specific activities and product types.”
FCA does not regulate crypto assets but regulates certain crypto derivatives such as futures contracts, contracts for difference, and options along with those that they consider securities.
“A firm must be authorised by us to advertise or sell these products in the UK,” says the agency. Firms regulated by the FCA may also carry out activities that are not regulated by either the FCA or the Prudential Regulation Authority (PRA).
Late in June, the FCA said BML is not permitted to undertake any regulated activity in the UK and imposed requirements on it. The Binance Group, it further said, appeared to be offering UK customers various products and services via its website, Binance.com.
Last month, however, Binance said BML is a separate legal entity incorporated in the UK and regulated by the FCA that does not offer any products or services through Binance.com.
In a notice published today and dated June 25, FCA says the firm is “not capable of being effectively supervised,” which is of particular concern because it offers complex and high-risk financial products, “which pose a significant risk to consumers.”
But now BML has complied with all aspects of the requirements, said the financial regulatory body in the UK.
According to the FCA website, Binance is currently trading under two names Binance.UK effective from July 29, 2020, and BML from July 16, 2020.
While investors don’t have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong on investing in certain crypto assets, “Complaints about regulated activities that this firm (BML) has permissions for may be covered,” by them, it added.
FCA further says BLM must protect the funds it holds on behalf of its customers and cannot lend the money to finance its own business.