Binance Banned From Conducting Regulated Business by UK Financial Regulator

Binance, the world’s biggest cryptocurrency exchange, has been banned by the UK’s financial regulator. According to The Financial Conduct Authority (FCA), the crypto giant is not legally permitted to conduct business in the country.

In additiona to the ban, the FCA warned people not invest their money in crypto-assets that advertise outrageous returns on investment.

Responding to the ban, Binance said the FCA notice would have no “direct impact” on the services it provides from its website Binance.com.

This is because the key crypto assets of the company are not based in the UK so the rulling of the FCA will have little or no impact on Binance’s buisness in the UK.

The FCA does not regulate cryptocurrencies but requires exchanges to register with them. Binance has not registered with the FCA and therefore is not allowed to operate an exchange in the UK.

Binance said that the firm’s relationship with its users had not changed, stressing: “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.”

The FCA move comes amid pushback from regulators around the world against cryptocurrency platforms.

Binance.com is an online centralised exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending.

Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.

The FCA said that Binance Markets Limited (BML), which is owned by Binance Group, is not currently permitted to undertake any regulated activities without the prior written consent of the FCA.

Binance has until Wednesday to comply with the ruling.