FCA bans Binance in the UK following Japanese warning

Over the weekend, the Financial Conduct Authority announced via its own website that it has banned Binance from undertaking any regulated activity in the UK, confirming that the ban also applies to other entities that fall under the wider group, Binance Group. In addition, the announcement warned that the Group appears to be attempting to offer customers based in the UK an array of services and products via its website, Binance.com.

The UK’s financial watchdog stated in its latest announcement:

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 authorisation, registration or licence to conduct regulated activity in the UK.

This huge blow to the crypto exchange giant comes as a reaction to a warning placed by the Japanese regulator, the FSA, which on Friday stated that Binance had been offering its crypto exchange services to customers in the country without ever having officially registered with the Financial Services Agency. The latest warning is the second placed by the FSA against Binance, having first complained about the crypto exchange in March 2018. The first warning occurred during a time when the regulator threatened criminal charges against the exchange if it were to continue to operate without obtaining a regulatory license.

Back in April of this year, Germany’s financial watchdog also warned potential investors that Binance had most likely violated securities rules regarding the launch of its trading in stock tokens. Despite this, it seems as if the most recent move from the UK’s FCA is one of the most substantial steps any large-scale regulator has made against the crypto exchange.

The FCA also revealed a consumer warning against Binance Markets Limited, a London-based affiliate overseen by the UK regulator and controlled by chief executive Changpeng Zhao, as well as the Binance holdings company registered in the Cayman Islands.

This warning against Binance from the FCA is a clear contribution towards the global efforts from regulators to tackle widespread concerns that a large portion of the crypto industry is being utilised for criminal activity.

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