UK financial regulator FCA bans operation of Binance crypto exchange

The UK financial regulator FCA has ordered Binance to suspend all UK regulatory activities and impose strict requirements on one of the major crypto exchanges.

The British financial regulator FCA bans the operation of the Binance crypto exchange

The FCA’s intervention in the past few days is one of the major moves by the global regulator against Binance, a digital asset company whose companies are subsidiaries around the world. The exchange has until Wednesday evening to confirm that it has complied with observers’ requests and remove its ads.

The intervention is an indication of how regulators are reacting to the crypto industry due to concerns about its possible role in illegal activities such as money laundering and fraud, fraud, and its ability to protect consumers.

Later that week, the Financial Regulator also issued a consumer alert to both the registered Cayman Islands of Binance Holding and Binance Markets Limited, a London-based subsidiary led by CEO Changpeng Zhao and controlled and controlled by the UK regulator.

“Binance Markets Limited is not authorized to operate in the UK,” the FCA said, noting that “no other company within the Binance group has any form of authorization, registration or UK government license to operate in the UK has “.

The group did not immediately respond to the FT’s request for comment, but said in advance that it “takes its compliance obligations very seriously and is committed to complying with local regulatory requirements whenever possible”.

Binance Markets Limited is not authorized under the FCA’s crypto registration system, which is mandatory for groups in the UK providing digital asset services.

The company applied to become a regulator-registered crypto firm, but withdrew its application last month “after a deep commitment from the FCA,” according to an observer spokesman and two people familiar with the situation.

The FCA’s focus in deciding whether to approve such requests is based on a review of controls and practices to prevent money laundering and terrorist financing.

Binance is a major operator in the rapidly growing cryptocurrency market, offering a wide range of services to customers around the world, including trading dozens of digital currencies, futures contracts, options, commodity tokens, savings accounts, and loans. According to data from TheBlockCrypto, it registered the equivalent of 1.5 tons of cryptocurrency volume last month.

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