Financial watchdog bans Binance crypto exchange from UK
The UK financial watchdog has ordered Binance to suspend all regulated activities in the UK and imposed strict requirements to blame one of the world’s largest crypto exchanges.
The recent intervention by the Financial Conduct Authority is one of the most significant moves global regulators have taken against Binance, a large digital asset firm with affiliates around the world. The exchange must ensure it complies with Watchdog’s requirements until Wednesday evening.
The intervention is a manifestation of concerns over the potential role of regulators in illegal activities such as money laundering and fraud, and crackdown on the crypto industry for often weak consumer protection.
The FCA will also be affiliated with Binance Markets Limited, a London-based subsidiary managed by Cayman Islands-registered holding company Binance and CEO Changpeng Zhao this weekend and overseen by UK regulators. Issued a warning to consumers for both.
“Binance Markets Limited is not authorized to conduct regulated activities in the UK. The FCA said, “The other entities of the Binance group do not hold any UK authorizations, registrations or licenses to conduct regulated activities in the UK,” he added.
“We take a collaborative approach in working with regulators and take compliance obligations very seriously,” Binance said. As Binance Markets Limited is an independent entity, the FCA opinion added that “the services offered on Binance.com have no direct impact.”
Binance Markets Limited is not approved by the FCA cryptocurrency registration system required for UK groups providing digital asset services.
The entity had applied to become a cryptocurrency company registered with the regulator, but withdrew the request last month, according to two people familiar with the situation. Watchdog confirmed that the request was withdrawn “after intensive FCA involvement”.
The objective of the FCA in deciding whether or not to approve such requests is based on a review of controls and practices aimed at preventing money laundering and terrorist financing.
Binance is one of the largest operators in the booming crypto market and provides services to its customers around the world, including dozens of digital coins, futures, options, stock token exchanges, accounts. savings and loans. Last month, it recorded $ 1.5 trillion in cryptocurrency, according to data from TheBlockCrypto.
As part of the FCA’s actions, regulators ordered Binance to post on its website by next Wednesday that “BINANCE MARKETS LIMITED is not authorized to conduct regulated activities in the UK.” Binance Markets Limited also suspends advertising and financial promotions, stating: “All records and / or information must be protected and stored… Suitable for all UK consumers of this system.
Binance Markets Limited was founded a year ago as part of a plan to launch Binance UK, a UK-focused exchange. It should have been a “circle” of larger global operations, according to official documents and two sources. Familiar with the problem.
The FCA bans Binance from providing services in the UK, but UK citizens can access Binance’s services in other jurisdictions.
Binance Markets Limited, based in London, has been authorized by the FCA to provide consumers with investment services in traditional currencies. This was achieved by Binance by purchasing a financial company already registered with regulators. According to official documents, the deal was approved by the FCA last June.
The FCA’s move came after the Financial Services Agency of Japan warned last week that Binance was fraudulently trading cryptocurrencies with Japanese citizens. This is the second time the FSA has warned Binance since issuing the same notice in 2018.
German financial watchdog warns investors In April, Binance may have broken securities rules regarding the start of trading in stock tokens. This is an exchange failure. Attract..
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Financial Watchdog Bans Binance Crypto Trading From UK Source Link Financial Watchdog Bans Trading Binance Crypto From UK