Britain bans Binance cryptocurrency exchange from operating in UK
- The UK financial regulator has ordered Binance to stop all regulated activity in the UK.
- The watchdog also issued a warning to potential crypto investors, telling them to be “wary” of promises of big returns.
- The CEO of Binance previously said the company is “highly regulated.”
- See more stories on the Insider business page.
The UK financial watchdog has warned that the Binance cryptocurrency exchange is not allowed to operate in the UK without its express approval.
The Financial Conduct Authority, the regulator of some 60,000 financial services and markets companies in the UK, said on Saturday that “Binance Markets Limited is currently not authorized to undertake regulated activities without the prior written consent of the FCA “.
Binance Markets Limited is part of the larger Binance group, operating the largest cryptocurrency exchanges in the world.
The watchdog also issued a warning to potential crypto investors. “Beware of online and social media ads promising high returns on investment in cryptoassets or crypto-asset related products,” he advised.
“While we do not regulate crypto-assets like Bitcoin or Ether, we do regulate certain crypto-asset derivatives (such as futures, contracts for difference, and options), as well as crypto-assets that we would consider as “titles”, “the FCA statement read. “A business must be authorized by us to advertise or sell these products in the UK.”
In an email to Insider, Binance said, “We are aware of recent reports regarding an FCA UK advisory regarding Binance Markets Limited (BML). BML is a separate legal entity and does not offer any product or service through the Binance.com website.”
“We take a collaborative approach in working with regulators and take our compliance obligations very seriously. We actively keep abreast of evolving policies, rules and laws in this new space,” the statement said.
The ban in Britain comes a day after Japan’s financial regulator, the Financial Services Agency, warned that Binance is not registered to do business in this country.
Earlier this year, German financial watchdog BaFin warned that the company may have broken securities trading rules after allowing non-U.S. Users to trade tokenized versions of certain U.S. stocks, including Tesla, Coinbase and MicroStrategy.
Binance, which does not have a single location for its headquarters, generally allows users to trade crypto derivatives, including futures and options. But as retail traders prepared to trade stocks around the clock over the past year, the stock market has offered investors the opportunity to trade fractional shares. use a German broker as an intermediary, according to Financial Time.
CEO Changpeng Zhao previously said in a Bloomberg interview the business is “highly regulated”.