The regulators in the United Kingdom have banned Binance. The cryptocurrency exchange platform is the largest crypto exchange in the world. The move is another major hit to the crypto market.
Britain’s Financial Conduct Authority said Saturday the crypto exchange platform “is not permitted to undertake any regulated activity in the U.K.”
According to CNBC, Binance must add a notice from June 30 that informs users about the ban. The notice reads: (BINANCE MARKETS LIMITED IS NOT PERMITTED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE U.K. 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 U.K. authorisation, registration, or license to conduct a regulated activity in the U.K.).
Binance planned to launch its digital asset marketplace in Britain
A few months ago, the firm was planning to launch its first digital asset marketplace in Britain. Nonetheless, the largest crypto exchange by trading volumes couldn’t register with the FCA after it didn’t meet the anti-money laundering requirements.
“Binance Markets Limited withdrew their 5MLD application on 17 May 2021 following intensive engagement from the FCA,” a spokesperson for the FCA told CNBC. “The action taken today on Binance Markets Limited has been in train for some time.”
According to a spokesperson by the FCA, the ban is limited. the exchange is platform is limited from offering regulated services in Britain. However, non-registered companies can still interact with customers from the U.K. In other words, the company can still provide customers with Brits crypto trading on its website.
A Binance spokesperson told CNBC: “The FCA U.K. notice has no direct impact on the services provided on Binance.com … 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,” the spokesperson added. “We are actively keeping abreast of changing policies, rules, and laws in this new space.”
“The FCA has stated that Binance is not permitted to conduct regulated activities in the U.K.,” Laith Khalaf, financial analyst at AJ Bell, said via email. “Providing access to cryptocurrencies itself is not a regulated activity, but offering derivatives is, which the activity the FCA is clamping down on is presumably.”