British financial regulator, the Financial Conduct Authority (FCA) has banned Binance from conducting any regulated activity. FCA said Binance Markets Ltd., one of the world's largest cryptocurrency exchanges “must not, without the prior written consent of the FCA, carry out any regulated activities... with immediate effect.”
It also issued a warning to consumers about the group. In response, Binance said that Binance Markets was not yet using its regulatory permissions, and that the move will not impact services offered on its website. A spokesperson of the company was quoted as saying, “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.”
Trading of cryptocurrencies is not directly regulated in Britain. However, offering services such as trading in cryptocurrency derivatives does require authorisation. The FCA has told Binance that it must display a notice stating 'BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK' on its website and social media channels by June 30. It is also required to secure and preserve all records relating to UK consumers and inform the FCA by July 2. No explanation on the measures have been provided yet.
British citizens will still be able to access Binance's services in other jurisdictions. The FCA has stepped up its crackdown efforts on cryptocurrency trading, which has gained popularity across the globe. It has required all firms offering cryptocurrency-related services to register and show they comply with anti-money laundering rules, since January. However, it said earlier this month that only five firms had registered and the majority were not yet compliant.
