UK Financial Regulator Bans Binance Crypto Platform
United Kingdom financial regulator bans Binance, a cryptocurrency platform from operation this week. The financial regulator issued a “consumer warning” noting that Binance Group and its London-based subsidiary Binance Markets Limited are “not permitted to undertake any regulated activity in the UK.”
Cayman Islands-based Binance Group “appear to be offering UK customers a range of products and services via a website, Binance.com,” the Financial Conduct Authority (FCA) noted.
While the FCA doesn’t regulate digital currencies such as Bitcoin or Ether, it said, the agency claims jurisdiction over cryptocurrency derivatives as well as crypto assets it deems securities. UK investors in most advertised crypto assets will not be entitled to financial services compensation scheme “if things go wrong,” FCA said.
London-based Binance Markets Limited previously had permission from the FCA to provide traditional investment services not involving crypto currencies that has now been withdrawn, the Financial Times reported.
Binance Markets Limited had applied to the Financial Conduct Authority to become a registered cryptocurrency company but withdrew the application in May, according to the report.
Binance in a series of tweets Sunday clarified that Binance Markets Limited “is a separate legal entity and does not offer any products or services via the Binance.com website.” Binance also tweeted, “The FCA UK notice has no direct impact on the services provided on Binance.com.”
UK Financial Regulator Bans Binance Crypto Platform
