Fresh from announcing its proposed exit from Ontario in Canada, heavyweight cryptocurrency exchange Binance has been ordered by the Financial Conduct Authority (FCA) to quit all regulated services within the UK.
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK.” A statement on the FCA’s website read.
“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.”
A few days ago, Newsbsc reported how the financial market supervisor in the UK, FCA, warned consumers against patronizing unregistered crypto-assets firms. Well, it all makes sense now after the press statement released yesterday.
“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.”
The FCA further seized the opportunity to warn consumers to be “wary” about their involvement in cryptocurrency, emphasizing that they might not have access to support and compensation schemes if something goes wrong.
“Be wary of adverts online and on social media promising high returns on investments in cryptoasset or cryptoasset-related products.
“Most firms advertising and selling investments in cryptoassets are not authorised by the FCA. This means that if you invest in certain cryptoassets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.”
The FCA clarified that they don’t “regulate” Bitcoin per say but they have powers to regulate other crypto products.
“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information. A firm must be authorised by us to advertise or sell these products in the UK”
Binance however reassured customers that the FCA’s restriction does not affect the current services it provides.
“The FCA UK notice has no direct impact on the services provided on http://Binance.com.
“Our relationship with our users has not changed.”