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Binance, the world’s largest cryptocurrency exchange, banned by UK regulator

Binance in UK

In what is seen as the latest sign of a growing crackdown on the crypto market around the world, largest cryptocurrency exchange Binance has been banned from operating in the UK by the country’s markets regulator.

The Financial Conduct Authority (FCA) has decided that the company cannot engage in any “regulated activity” in the United Kingdom. 

It also released a consumer alert about Binance.com, recommending users to be aware of advertisements promising huge returns on cryptocurrency investments. 

The FCA notification, according to Binance, will have no “direct impact” on the services it offers through its website Binance.com. 

Since existing crypto exchange of  Binance is not registered in the United Kingdom, the FCA judgement will have no effect on UK people who use the website to buy and sell cryptocurrencies. 

Although the FCA does not oversee crypto-currencies, it does require exchanges to register. Binance is not permitted to operate an exchange in the United Kingdom since it has not registered with the Financial Conduct Authority (FCA). 

Binance stated that its connection with its users has not altered, emphasising the following: “When it comes to cooperating with regulators, we take a collaborative approach and take our compliance obligations very seriously. In this new space, we are actively keeping track of evolving policies, rules, and legislation.” 

The FCA’s move comes amid a global backlash against crypto-currency platforms from authorities. 

Cryptocurrencies Rise Despite Binance UK Warning

Binance.com is a centralised online exchange that allows users to buy and sell a variety of digital currencies, as well as digital wallets, futures, equities, savings accounts, and even lending. 

Binance Group is headquartered in the Cayman Islands, with Binance Markets Limited in London as an associate. Binance Group was previously situated in Malta and has several businesses all over the world. 

Binance Markets Limited (BML), which is controlled by Binance Group, is now not permitted to engage in any regulated activity without the FCA’s prior written authorization, according to the regulator. The deadline to abide with the order is Wednesday. 

The regulator also stated that no member of the Binance Group is authorised, registered, or licenced to perform regulated activity in the United Kingdom. 

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