FCA bans cryptocurrency exchange Binance from the UK
The Financial Conduct Authority (FCA) has banned cryptocurrency exchange Binance from operating in the UK.
The trading platform, which also offers crypto loans, is the latest victim of the City watchdog’s crackdown on cryptocurrencies.
The regulator is concerned about the volatility of the asset class as well as the risk of scams and has warned investors that they could lose all their money.
Crypto exchanges that let users buy and seller virtual currencies such as Bitcoin and Ethereum are required to register for anti-money laundering purposes with the Financial Conduct Authority.
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Binance Markets Limited (BML), which is part of the Binance Group, has not registered with the FCA and has now been banned from offering services to investors in the UK.
“Due to the imposition of requirements by the FCA, BML is not currently permitted to undertake any regulated activities without the prior written consent of the FCA,” the regulator said.
“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.
“The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com.”
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Binance has said in response that BML is a separate legal entity and it will not be impacted by the FCA ban.
“The FCA UK notice has no direct impact on the services provided on Binance.com,” the platform said in a statement.
“Our relationship with our users has not changed.
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space.”
In contrast, Binance announced last week that it can no longer support customers from Ontario, Canada amid threats of legal action from regulators in the country.
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