U.K. regulator bars crypto exchange Binance from operating in Britain

    Britain’s financial regulator has ordered Binance Markets Ltd., one of the world’s largest cryptocurrency exchanges, to stop conducting any regulated activity in the U.K. by June 30. But as the exchange pulled its application for the assets register, it will be unable to offer unregulated services too. It appears one of the most significant regulator’s moves amid global scrutiny in the crypto industry.

    According to the Financial Conduct Authority’s (FCA) register, until the end of June 30, Binance has to confirm that it has removed all advertising and financial promotions. The crypto exchange must also issue a warning to its consumers on the website, social media channels, and all other communications that it is no longer permitted to operate in the U.K. Binance Markets activity in the country would be suspended until FCA’s prior written consent.

    While the target of the restrictions is a separate legal entity from Binance, the FCA edict specifies that the notice must be put on Binance.com and communication channels, including the Binance mobile and desktop applications.

    Binance must also preserve all records relating to all its U.K. consumers and notify the FCA in writing by July 2, according to the financial watchdog.

    On Sunday, Binance Markets said on Twitter that it “does not offer any products or services via the Binance.com website. The Binance Group acquired BML May 2020 and has not yet launched its U.K. business or used its FCA regulatory permissions.”

    A spokesperson of the crypto exchange claimed by email that the FCA’s notice restricts, but doesn’t remove, permissions owned before by Binance Markets.

    “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,” he added on the official Binance Twitter account.

    As Bloomberg News reported, Binance is said to be under scrutiny by regulators in the U.S. and Europe in the last months and recently has received another warning from Japan over its unregistered operations.

    According to The Block’s Data Dashboard, Binance is the largest crypto exchange in the world. It recorded over $1.5 trillion worth of trading volumes last month.

    Source: https://www.reuters.com/world/uk/financial-watchdog-orders-crypto-exchange-binance-stop-regulated-activities-uk-2021-06-27/

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