Binance, the world’s biggest crypto-currency exchange, has been banned by the UK Financial Conduct Authority (FCA) .
The UK’s Financial Conduct Authority (FCA) has ruled that it cannot conduct any “regulated activity” in the UK. It also issued a consumer warning about Binance, advising people to be wary of adverts promising high returns on crypto asset investments.
The Financial Conduct Authority (FCA) also stressed that no entity in the Binance Group holds any form of authorization, registration or license to conduct regulated activity in the UK.
Binance, in a response has said the stance of the Financial Conduct Authority (FCA) would have no “direct impact” on the services it provides from its website. Stating that it’s existing crypto exchange is not UK-based so despite the ruling, there will be no impact on British residents who use the website to purchase and sell crypto-currencies.
Meanwhile, Information reaching bluebloodz.com reveals that the UK’s Financial Conduct Authority (FCA) does not in any way regulate crypto-currencies and its exchange, but requires some sort of registration from them. So since Binance has not registered with the FCA it is therefore not allowed to operate an exchange in the UK.
Binance is an online centralized exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending. This is not the first time that Binance has come under scrutiny by regulators over its global operations.
In the US, one of the firm’s entities – Binance Holdings – has been the subject of a probe by the US Securities and Exchange Commission (SEC), specifically by its officials dealing with money laundering and tax offences, according to Bloomberg.
The Binance Holdings company is currently based in the Cayman Islands. It was previously based in Malta.