After examining Binance in the UK, the Financial Conduct Authority (FCA) has ordered the crypto exchange to stop operations in the country. The FCA announced that Binance Markets Limited is no longer “permitted to undertake any regulated activity in the UK.”
The announcement also states that no other body affiliated with the Binance Group can operate in the UK and that Binance must cease operations by Wednesday.
The FCA’s recent interference is one of the significant moves by global regulators against Binance, one of the world’s largest cryptocurrency exchanges with subsidiaries all over the world. The involvement also goes a long way to show that regulators are cracking down on crypto because of fraudulent activities, money laundering, and vulnerable consumer protection.
The FCA has warned crypto traders against investing with unauthorized exchanges:
“The FCA does not authorize most firms advertising and selling investments in crypto assets. This means that if you invest in certain crypto assets, you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.”
Although the FCA does not control cryptocurrencies like Bitcoin (BTC), the regulating organization regulates derivatives trading like digital assets, futures contracts, and options.
In response, Binance explained its corporate structure on Sunday. The crypto exchange mentioned that Binance Markets Ltd (BML) does not provide any service through Binance.com. Referring to BML as a “separate legal entity.” The tweet states that
“The FCA UK notice has no direct impact on the services provided on http://Binance.com.”
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