The Financial Conduct Authority (FCA), the UK’s financial watchdog, prohibits Binance, one of the world’s largest operators, from engaging in any activity. And it launches a warning to consumers about the platform.
Indeed, this is one of the most significant actions that any global regulator has taken against Binance. In addition to the lack of protection that consumers face.
Specifically, the FCA has noted that Binance Markets Limited (BML) which is owned by the Binance Group, was not allowed to conduct any regulated activity in the country. Since it did not have your written consent to operate.
Indeed, in addition to the actions taken by the FCA, the regulator has established that Binance has until next Wednesday to publish on its website that it does not have its permission to carry out regulated activities in the United Kingdom.
Likewise, ensure and preserve all records and / or information related to all clients in the country from their systems. And put an end to any kind of financial advertising and promotions.
FCA instructs Binance not to carry out any activity
To recall, Binance Markets Limited was established a year ago as part of a larger group to launch a UK platform, Binance UK.
In particular, according to the statement of the British regulator: ‘Binance Markets Limited is not currently authorized to conduct any regulated activity without the prior written consent of the FCA».
As a curious fact, the United Kingdom is not the only country that has warned Binance for offering products and / or services to its citizens without the proper permits. In fact, Japan did it this week as well.
The platform is also under scrutiny from regulators in other countries, including the United States and Germany. Currently, Binance announced the closure of its operations in Ontario (Canada), without specifying a specific reason.
Respond to the decision
For its part, Binance applied to become a registered cryptocurrency company. As required of British groups that offer services with cryptocurrencies. However, it withdrew that request last month due to the strict criteria of the regulatory body.
Because all of this? The FCA has not wanted to give a specific reason why they are asking Binance to cease operations. What is known is that they have started a cryptocurrency research campaign.
If anything, Binance’s existing crypto exchange is not based in the UK. So despite the FCA ruling, there will be no impact on UK residents using the website to buy and sell cryptocurrencies.
Meanwhile, in a thread on Twitter, Binance has stated that they have always adhered to the financial regulations of the countries in which they operate.
Primarily, Binance said that the FCA notice would not have a “direct impact” on the services it provides from its Binance.com website.
«The FCA UK notice does not have a direct impact on the services provided. Our relationship with our users has not changed. We take a collaborative approach when working with regulators and take our compliance obligations very seriously».
In closing, what do you think of the FCA’s decision regarding Binance? Let us know in the comment box.
I say goodbye with this phrase from Montesquieu: «The law must be like death, which does not exempt anyone».