The Financial Conduct Authority (FCA) has banned the world’s largest cryptocurrency exchange from conducting “regulated activity” in the UK.
Besides banning the crypto exchange, the UK financial regulator also issues a consumer warning against Binance instructing citizens to avoid adverts that promise high returns on cryptocurrency investments.
The existing crypto exchange owned by Binance is not based in the UK, and therefore the ban will not affect UK residents who use the exchange to sell and purchase cryptocurrencies.
The FCA does not regulate cryptocurrencies but requires crypto exchanges to register before offering cryptocurrency services to UK residents. The fact that Binance has not registered with the FCA means that the crypto exchange cannot operate a cryptocurrency exchange in the UK.
In response to the ban, Binance said, “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.”
Binance Group is currently based in the Cayman Islands, although in London, one of its affiliate firms, the Finance Markets Limited (BML). The FCA gave BML firm up to Wednesday to obtain written consent from the regulator to offer any regulated activity in the UK.
The FCA ban comes amid a worldwide crackdown on cryptocurrencies in different countries, including China.