Categories: Analysis

Binance has been “touched” by UK regulator

On June 26, the UK’s Financial Conduct Authority (FCA) issued a warning about the practices of the Binance cryptocurrency exchange, just a day after Japan’s financial regulator issued a similar notice.

The UK Financial Conduct Authority (FCA) has notified users that Binance Markets Limited and its parent company Binance Group are not authorized to conduct financial activities in the UK.

This notice is based on the requirements imposed by the FCA preventing Binance and its subsidiaries and affiliates from conducting regulated activities without prior written notice. According to the FCA’s warning, Binance Group offers UK customers a wide range of financial products and regulated investment vehicles through Binance.com.

“Be wary of online and social media advertisements that promise high returns when investing in cryptocurrencies or crypto-related products.” FCA Warning. “Most companies promoting and selling investments in this asset class are not licensed by the FCA. This means that if you invest in certain cryptocurrencies, you cannot use the Financial Ombudsman Service or the Financial Services Compensation Program in the event of problems. “

The above warnings seem to target Binance’s aggressive advertising in the UK media.

Money evolves.

It’s time to adjust. #TakeOverLondon ???????? pic.twitter.com/Vjs3LQpY5x

– Binance UK (@BinanceUK) August 28, 2020

According to the news site Wu Blockchain, the FCA issued an even more serious warning on June 25, citing the Financial Instruments and Markets Act 2000, asking Binance to cease operations in the UK and to hand over all information and data on June 30 Here. However, the above information will no longer appear on the FCA official website.

The UK FCA requires Binance to close its business on June 30, 2021 and to retain any information that may be made available to the CFA. pic.twitter.com/Bu8cVwn7cF

– Wu-Blockchain (@WuBlockchain) June 27, 2021