Binance Responds to FCA Decision to Restrict Its Services in the UK
Yesterday the UK Financial Conduct Authority issued a warning to Binance Markets Limited and Binance Group that they cannot operate in the country as it currently does.
According to an official note, Binance Markets Limited is no longer allowed to conduct any regulated activity in the UK. The only criteria were unless the prior written consent of the tax authorities has been obtained in advance.
The warning also advised users to be careful with crypto-asset advertisements online. It reminded users that the FCA does not regulate most of the companies that promote or sell crypto investments. However, they also stated that while they don’t regulate assets like Bitcoin and Ethereum, they do regulate crypto-asset derivatives. More specifically, futures contracts and the crypto assets they classify as securities.
In a series of tweets posted on June 28, the crypto exchange responded to the latest statement from the UK’s Financial Conduct Authority (FCA).
Binance made it clear that BML is an independent entity from Binance.com and does not offer any related products or services. The company has not yet started its UK business or has used the regulatory license mentioned above, it said. The exchange also made it clear that it has no direct impact on the services offered on Binance.com.
Binance has also issued a settlement statement saying it takes a “collaborative approach” to work with regulators and takes supervision seriously. As the authorities began investigating how the cryptocurrency market could be controlled, the exchange is now under scrutiny by several national regulators.
In particular, popular exchanges such as have become a target because they have a large user base, high liquidity and funds, and operate in multiple countries.
The FCA announced a preliminary registration system for cryptocurrency companies from December 2020 through July 2021.