FCA issuses Major Crypto exchange Binance ban in UK

In 2017, Binance was established as a cryptocurrency exchange with a huge emphasis on altcoins trade. Binance has rapidly been one of the most prominent cryptocurrency exchanges, with over 500 cryptocurrencies and virtual tokens available for trade, including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Dogecoin (DOGE), and its own Binance Coin (BNB).

Binance is providing a wide range of services all over the globe as prove it has proved to be one of the significant players growing rapidly in the cryptocurrency industry by including trade in hundreds of digital currencies, stocks token, saving accounts, futures, options, and lending. According to reports last month it gained a profit of approximately $1.5 trillion.

UK FCA bans sale of cryptocurrency to retail customers | Digital Payments | FinTech Magazine

FCA Action

According to some research made, the Financial Conduct Authority of the United Kingdom once declared to stop all the regulated activities carried out by Binance which is one of the world’s largest cryptocurrency exchanges and has ordered to issue customer alerts on the company. However, the company did not follow the regulations being made by FCA  when initially Japan raised a complaint about its illegal cryptocurrency exchange earlier in 2018. As a result, the FCA has now issued a customer alert this weekend which is said to target both the Binance Markets Limited and Cayman Islands-registered Binance holdings business, London-based subsidiary owned by CEO Changpeng Zhao and regulated by the UK regulator.

The FCA stated that “Binance Markets Limited is not permitted to undertake any regulated activity in the UK,” and also added, “no other entity in the Binance Group holds any form of UK authorization, registration or license to conduct a regulated activity in the UK.”

The company did not respond to a request for comment from the Financial Times right away, but it has previously stated that it “takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate”.

Column chart of Monthly crypto volumes in US dollar equivalent ($bn) showing Trading activity on Binance has surged this year

The FCA’s cryptocurrency registration process, which is necessary for UK companies delivering digital asset services, has not approved Binance Markets Limited.

Earlier Warned

The FCA’s proposal comes after the Financial Services Agency of Japan issued a warning last week that Binance was engaging in unlicensed cryptocurrency trading with Japanese nationals. After issuing a similar warning in 2018, the FSA has issued another warning regarding Binance.

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