The United Kingdom has banned Binance Markets from participating in any regulated business in the country, expanding the global crackdown on cryptocurrencies.

The British financial regulator stated that, as one of the world’s largest cryptocurrency exchanges, Binance cannot conduct any regulated activities, and issued a warning to consumers about the platform, which has been increasingly subject to globalization. Review.

In the notice dated June 25, the Financial Conduct Authority (FCA) stated that Binance Markets Ltd, Binance’s only regulated UK entity, “cannot carry out any regulated activities without FCA’s prior written consent…with immediate effect” .

It also issued warnings to consumers about Binance Market and the broader Binance Group.

Binance said in a statement that the Binance Market, which it acquired in 2020, has not yet used its regulatory license, and FCA’s move will not affect the services provided on its website

“We take a collaborative approach when working with regulators, and we take our compliance obligations very seriously. We are actively keeping up with the ever-changing policies, rules and laws in this new field,” a spokesperson said.

Binance announced in June last year that it has acquired an entity regulated by the FCA and will use it to provide cryptocurrency trading services using British pounds and euros.

Fearing that it might be involved in money laundering and fraud, this move expanded the regulatory crackdown on the cryptocurrency industry.

Bitcoin rose on Monday, rising 5.1% to US$35,309 as of 7:19 in the morning in Hong Kong.

Cryptocurrency bulls usually interpret stringent regulatory actions as signs that the market is maturing, and say that the potential of a stronger safety net may attract more investors into the field.

Strengthen supervision

Although the trading of cryptocurrencies is not directly regulated in the UK, the provision of services such as trading of cryptocurrency derivatives does require authorization.

FCA has informed Binance that it must display a notice on its website and social media channels by June 30 stating that “BINANCE MARKETS LIMITED does not allow any regulated activities in the UK.”

It must also protect and keep all records related to British consumers and notify the FCA by July 2.

The regulator did not explain why these measures were taken.

British citizens can still use Binance’s services in other jurisdictions.

FCA is strengthening the supervision of cryptocurrency trading, and the popularity of cryptocurrency trading in the UK and other countries around the world has soared.

Since January, the FCA has required all companies that provide cryptocurrency-related services to register and certify that they comply with anti-money laundering rules. However, earlier this month, it stated that only five companies have registered, and most of them are not yet compliant.

A notice posted on the website of the Financial Services Agency of Japan revealed that Japanese regulators stated on June 25 that Binance operates illegally in the country.

Last month, Bloomberg reported that officials investigating money laundering and tax violations by the US Department of Justice and the Internal Revenue Service sought information from individuals who knew Binance’s business.

In April this year, the German financial regulator BaFin stated that the exchange may be fined for providing digital tokens without investor prospectuses.

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