Last Updated on: 27th June 2023, 04:07 am
The FCA (Financial Conduct Authority) orders to stop operating Binance in the UK this weekend.
The UK Treasury has posted a warning on its website that says:
“Binance Markets Limited is not authorized to engage in any regulated activity in the UK. This company is part of a larger group (Binance Group). Due to the requirements of the FCA, Binance Markets Limited is not currently permitted to engage in regulated activities without the prior written consent of the FCA.”
“No other company in the Binance group of companies has any form of UK authorization, registration or license to conduct regulated activities in the UK.”
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“The Binance Group appears to offer a range of products and services to UK customers through a website, Binance.com.”
Binance Problems
The latest blow to one of the world’s largest crypto exchanges follows Binance’s warning by the Japanese FSA on Friday. The warning from the Japanese regulator said Binance was offering crypto exchange services in the country without registering with the FSA.
This was the second warning from the Japanese Financial Market Authority. The crypto exchange giant received its first warning from the FSA in March 2018 when regulators warned that the exchange would face criminal prosecution if it continued to operate without a license.
In April, the German financial regulator warned investors that Binance likely violated securities rules when it started trading stock tokens. However, the latest move by the FCA is one of the most important moves a global regulator has taken against Binance.
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The Financial Conduct Authority has issued a consumer warning against the Cayman Islands-registered holding company Binance and Binance Markets Limited, a London-based subsidiary controlled by CEO Changpeng Zhao and overseen by the UK regulator.
The FCA Binance warning comes as regulators around the world try to respond to concerns that the crypto industry is being used for illegal activities like money laundering.