The FCA, the UK’s financial watch agency, has ordered that Binance Markets Limited to stop all its activities in Britain. Binance Markets Limited is owned by Binance, which is the largest cryptocurrency exchange platform by volume, and will have to cease operations in the United Kingdom by next Wednesday June 30, although this will not affect the services offered in Binance.com, according to the company itself.
Although the FCA does not regulate “cryptoassets such as Bitcoin or Ether”, as they themselves explain, they do so with other derivative cryptoassets (futures, CFDs and options, in addition to securities) and any company that wants to sell these products must be authorized by the aforementioned regulatory body.
“Binance Group bought BML in May 2020 and has not yet launched its UK business or used FCA regulatory permits,” secure from Binance. It is precisely against this business that the British regulator has spoken out, focusing on subsidiaries registered in London and the Cayman Islands.
That said, activities carried out from Binance.com will not be affected. Binance’s cryptocurrency exchange is not based in the UK, so even British residents will be able to continue buying and selling normally. Even so, the United Kingdom obliges Binance to indicate on the website that “Binance Markets Limited is not currently authorised to carry out any regulated activity in the United Kingdom”, as well as to cease any advertising or financial campaigns for British users.
Why all this? the FCA has declined to give a specific reason why they are asking Binance to cease operations. What is known is that have begun a campaign to investigate other operations derived from cryptoassets, warning that if these are not regulated, the investor is not protected “if things go wrong”, in the words of the FCA.
The UK FCA’s decision to ban binance markets limited’s operations comes days after Japan warned that Binance was carrying out unauthorized activities with cryptocurrencies and for Japanese citizens. In Germany, the regulator warned consumers in April that Binance had likely violated certain rules when trading.
up-to-date: The headline of the original news, as well as some of its contents, did not make it clear that the FCA’s order referred to the subsidiary Binance Markets Limited and not to the sale of cryptocurrencies through Binance. We have updated the text to clarify it and we regret the inconvenience.