Binance cryptocurrency exchange has lately been warned by the Financial Conduct Authority to discontinue regulated activities in the United Kingdom and simultaneously not to promise payment of high returns through crypto-asset investments in promotional campaigns and advertisements.
FCA is the financial regulatory authority in the UK and currently it has no regulation on cryptocurrencies. UK residents are not barred from buying and selling of cryptocurrencies from websites.
Meanwhile, Binance has stated the warning will have no direct impact on its services which are provided to the Britons through its official website. The exchange is not based in the UK. It is headquartered in the Cayman Islands. FCA requires such crypto exchanges to get registered with them to operate in the country even remotely. Binance Markets Limited is based in London and it is an affiliate firm of Binance.
Binance is not registered with the authority and this is the reason it has been barred to operate in the UK. It is basically an online exchange offering a wide range of financial products like trading of digital currencies, savings accounts, lending, futures and digital wallets.
FCA has lately been sending strong signals about worries related to the dangers of cryptocurrency investments and this is the reason it is seeking the registration of such companies to operate in the UK. FCA is not authorized to stop individuals from trading in the segment. It is simply waving the biggest red flag vigorously.
The crypto exchange has come under such scrutinizes by other regulators including SEC in the United States for money laundering allegations and tax offenses. US consumers were warned about investing in cryptocurrency on the Binance platform.
Lately, Binance stated would be halting operations in Ontario, Canada over issues of not complying with the local regulators.
Simultaneously, the FSA regulatory authority of Japan has warned people again that Binance is operating with permission in the country.