The UK’s financial regulator has imposed a ban on the world’s leading cryptocurrency exchange, Binance Markets Limited, besides issuing a warning to investors of the digital currency.
The Financial Conduct Authority in a statement issued on June 26 said, “Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group)”.
Due to the imposition of requirements by the FCA, Binance will be required to get a written consent of the regulator before conducting any regulated activities in the country.
“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct a regulated activity in the UK,” read the statement.
“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,” Reuters quoted a spokesperson as saying.
Last year, Binance revealed that it had gotten an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros.
The Binance Group appears to be offering UK customers a range of products and services via a website, Binance.com.
The regulator also issued a warning to the investors saying they will not have access to any compensation service or legal assistance if they are cheated.
“Most firms advertising and selling investments in cryptoassets are not authorised by the FCA. This means that if you invest in certain cryptoassets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong,” it said.
“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information.
“A firm must be authorised by us to advertise or sell these products in the UK – check our Register to make sure the firm is authorised. You can also check our Warning List of firms to avoid,” the FCA added.
Earlier this month, authorities in Japan had declared that Binance was conducting activities in the country illegally.