The UK financial watchdog has authorized Binance stop all its activities in Great Britain. Binance, which is the largest cryptocurrency exchange by volume, will have to cease operations in the UK by next Wednesday June 30th.
Binance is a company that allows buying, selling and exchanging cryptocurrencies easily between and for users. The company was born in China, although today it has subsidiaries globally. The UK FCA has issued the order for the Cayman Islands and London registered subsidiaries, both areas where the regulatory organization has power.
According to the statement of the British regulator, “Binance Markets Limited is not currently authorized to carry out any regulated activity without prior consent in writing from the FCA. “
Having said that, activities carried out from Binance.com will not be affecteds, this is because it is an independent website and not the UK regulated subsidiary. Still, the UK requires Binance to indicate on the website that “Binance Markets Limited is not currently authorized to carry out any regulated activity in the UK.” As well as ceasing any advertising or financial campaign for British users.
Because all of this? the FCA has not wanted to give a specific reason why they ask Binance to cease operations. What is known is that have started a cryptocurrency research campaign. The reason is none other than the little deregulation that exists in them and lack of control. This has made cryptocurrencies often used for money laundering or criminal activities.
Bilance Markets Limited was established as a company in London last year. The objective was to offer British citizens the option of investing directly and through an exchange in the country. It obtained authorization to do so with traditional currencies after acquiring a British company that already had the authorization. However, when it comes to requesting authorization to do so with cryptocurrencies, he has not been so lucky.
The UK FCA’s decision to ban Binance trading comes days after Japan warned that Binance was carrying out unauthorized activities with cryptocurrencies and for Japanese citizens. In Germany, the regulator warned consumers in April that Binance had likely violated certain rules when it came to trading.
Via | WSJ
More information | FCA