Britain bans Binance in latest cryptocurrency crackdown

UK financial regulator has ordered Binance, one of the world’s largest cryptocurrency exchanges, to cease all regulated activity and issued a warning to consumers about the platform being monitored growing globally.

In a notice dated June 25, the Financial Conduct Authority (FCA) stated that Binance Markets Ltd, the UK entity of Binance, “shall not, without the prior written consent of the FCA, conduct any regulated activity … with immediate effect”.

Binance did not respond to a request for comment on Sunday.

Although cryptocurrency trading is not directly regulated in Britain, offering services such as trading in cryptocurrency derivatives requires authorization.

The FCA told Binance that by June 30, it must post a notice stating “BINANCE MARKETS LIMITED IS NOT AUTHORIZED TO UNDERTAKE ANY REGULATED ACTIVITY IN THE UK” on its website and social media channels.

He must also secure and keep all records relating to UK consumers and inform the FCA that this was done before July 2.

The regulator did not explain why it took action against Binance, which has previously said it takes its legal obligations “very seriously” and engages “with regulators and law enforcement collaboratively. “.

The FCA is stepping up its oversight of cryptocurrency trading, which has gained popularity in Britain as well as other countries around the world.

Since January, the FCA has required all companies offering cryptocurrency-related services to register and show compliance with anti-money laundering rules. However, earlier this month, he said only five companies had registered and the majority were not yet compliant.

The Japanese regulator said on June 25 that Binance was operating illegally in the country, a notice posted on the Financial Services Agency of Japan website showed.

Last month, Bloomberg reported that officials from the US Department of Justice and the Internal Revenue Service investigating money laundering and tax offenses sought information from people with insight into Binance’s business.

In April, German financial regulator BaFin warned that the exchange could be fined for offering digital tokens without prospectuses to investors.

Margie D. Carlisle