Binance banned in the City Watchdog raid on the large cryptocurrency exchange | Business news
Financial regulators have banned one of the world’s largest cryptocurrency exchanges from operating in the UK, but failed to explain why.
The Financial Conduct Authority (FCA) announced over the weekend that Binance Markets Ltd, Binance’s only regulated UK company, “may not engage in any regulated activity … with immediate effect” without the prior written consent of the FCA.
The watchdog also warned consumers about Binance Markets and the broader Binance group.
The FCA did not provide an explanation for the move, but required all companies to offer Cryptocurrency-related services have had to register since January and demonstrate compliance with anti-money laundering regulations.
Earlier this month it was said that only five companies had registered and the majority of operators had not yet complied with the regulations.
Founded in China, Binance announced last June that it had bought an FCA-regulated company to offer cryptocurrency trading services in pounds and euros.
However, a statement on Sunday said Binance Markets had not yet used its regulatory approvals and that the FCA’s move would not affect the services offered on the Binance.com website.
A spokesperson told Reuters news agency: “We take a collaborative approach to working with regulators and we take our compliance obligations very seriously.
“We are actively keeping up to date with changing policies, rules and laws in this new space.”
The FCA said: “Due to the imposition of requirements by the FCA, Binance Markets Limited is currently not permitted to conduct any regulated activity without the prior written consent of the FCA.
“No other Binance group company has any form of UK authorization, registration or license to conduct regulated activities in the UK.”
As part of a broader, non-specific warning about investing, the statement added, “Always be careful when contacted out of the blue, pressured to invest quickly, or promised returns that sound too good to be true to be.”
The FCA has told Binance that it will be up until Jan.
While cryptocurrency trading is not directly regulated in the UK, offering services such as trading cryptocurrency derivatives requires approval.
The UK is not alone in its audit of Binance as Japan took similar action last Friday.
Politicians and regulators around the world are increasingly interested in cryptocurrencies and related products.
Bank of England Governor Andrew Bailey previously warned people who buy them that they should be prepared to lose all of their money.