The Financial Conduct Authority (FCA), a financial regulatory body in the United Kingdom that operates independently of the UK Government, has banned Binance from all regulated activities in the country. In its latest warning during the weekend, the notice on the FCA website said:
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group). Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. No other entity in the Binance Group holds any form of UK authorization, registration, or license to conduct a regulated activity in the UK.”
The Binance Group currently offers a wide array of financial products and services through its website Binance.com.
The latest blow to the largest crypto exchange in the world in the United Kingdom came after Japan’s Financial Services Agency (FSA) issued a warning to Binance on Friday. The Japanese regulator issued a warning to Binance by saying that the renowned cryptocurrency exchange is offering its services in Japan without registering with the FSA. This is the second warning Binance received from the FSA. The first warning was issued in March 2018 where FSA warned the exchange of facing criminal charges if it continues operating without a license.
Germany’s financial watchdog (Federal Financial Supervisory Authority or BaFin) had warned investors back in April 2021 that Binance had violated European Union securities law by offering “stock tokens” such as Tesla Inc (TSLA.O), Apple Inc (AAPL.O), MicroStrategy Inc (MSTR.O), Coinbase Global Inc (COIN.O), and Microsoft Corp (MSFT.O).
However, the latest regulatory move by the United Kingdom’s FCA against Binance is the most significant step any global regulatory body has undertaken.
A consumer warning has been issued against both the Binance holdings company (registered in the Cayman Islands) and a London-based affiliate Binance Markets Limited (controlled by Binance CEO Changpeng Zhao and overseen by the UK regulator). Reports say that the latest FCA warning comes at a time when regulators across the world are concerned about the use of the cryptocurrency industry for illicit activities including money laundering.
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