UK’s Financial Regulator’s Notice has ‘No Direct Impact’ on Binance, says Exchange after FCA Ban
The leading cryptocurrency exchange, Binance, said that they are aware of the recent report about a notice sent by the UK's financial regulator in relation to Binance Markets Limited (BLM) that ruled that the firm cannot conduct any “regulated activity” in the UK.
“The FCA UK notice has no direct impact on the services provided on Binance.com. Our relationship with our users has not changed,” clarified Binance.
According to the exchange, BML, acquired by the Binance Group in May 2020, is a separate legal entity and does not offer any products or services via the Binance.com website.
Binance hasn’t launched its UK business or used its FCA regulatory permissions yet, said the exchange.
“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.”
Over the weakened, as we reported, Binance gave its Ontario, Canada-based users six months to exit their positions and leave after the Ontario Securities Commission (OSC) accused it and several other crypto trading platforms of failing to comply with provincial regulations.
Last week, Japan's Financial Services Agency (FSA) also warned Binance for the second time in three years that it is operating in the country without permission.
Now, the Financial Conduct Authority (FCA) has ruled that they can’t operate in the UK while issuing a consumer warning, advising people to be wary of adverts promising high returns on crypto asset investments.
The FCA said that BML is not currently permitted to undertake any regulated activities without the prior written consent of the FCA and has until Wednesday, June 30, to comply with the ruling.
The exchange must also clarify its website, social media channels, and other communications that it is no longer permitted to operate in the UK.
Moreover, no entity in the Binance Group holds any form of authorization, registration, or license to conduct a regulated activity in the UK, said the regulator. Binance Markets won’t be able to resume its UK operations without prior written consent.
While people in the UK are not allowed to use Binance’s services to speculate, they can still use the website to purchase and sell cryptocurrencies, analyst Colin Stone told BBC.
“A significantly high number of cryptoasset businesses are not meeting the required standards under the money laundering regulations, which has resulted in an unprecedented number of businesses withdrawing their applications,” an FCA spokesperson said. More than 90% of the firms assessed have withdrawn applications following the FCA’s intervention.