One of the world's biggest cryptocurrency exchanges Binance has been barred from functioning in the United Kingdom by the Financial Conduct Authority.
Financial Conduct Authority Ruled that Binance Cannot Operate in the United Kingdom
In a recently published article in BBC News, the Financial Conduct Authority (FCA) stated over the weekend that Binance Markets Ltd, Binance's sole regulated UK company "shall not carry out any regulated activity... with immediate effect" without the FCA's prior written permission.
It also issued a consumer alert on Binance.com, urging users to be cautious of advertisements promising large returns on cryptocurrency investments. This comes as authorities across the globe are pushing back against crypto-currency platforms.
Additionally, Binance.com is a centralized online exchange that allows users to buy and sell a variety of digital currencies, as well as digital wallets, futures, stocks, savings accounts, and even loans, according to a published report in News Sky.
FCA Says Binance is Not Authorized to Undertake Activities
Binance Markets Limited (BML), which is controlled by Binance Group, is presently not allowed to engage in any regulated activity without the FCA's prior written permission, according to the regulator. However, it has until Wednesday to comply with the decision.
In a published article in City Wire, the FCA regulates crypto assets but not cryptocurrencies. In order to promote or sell such goods in the United Kingdom, companies must be approved by the authority.
This implies that residents of the United Kingdom are not permitted to utilize Binance's services to speculate on whether the price of a cryptocurrency such as Bitcoin will rise or fall. They are, however, permitted to use the website to buy and trade unregulated crypto-currencies.
Other Controversies of Binance
In the United States, one of the firm's companies, Binance Holdings, has been the target of an investigation by the Securities and Exchange Commission (SEC), particularly by its money laundering and tax enforcement officers. In April, the Securities and Exchange Commission issued a similar warning to U.S. customers regarding the site.
Meanwhile, Binance announced its withdrawal from Ontario, Canada, on Saturday, after the Ontario Securities Commission accused it and many other cryptocurrency trading platforms of violating provincial laws.
For the second time in three years, Japan's Financial Services Agency (FSA) notified Binance on Friday that it is operating without authorization in the nation.
The United Kingdom is not alone in its investigation into Binance because Japan did the same thing on Friday. Politicians and authorities across the world are becoming more interested in cryptocurrencies and the goods that are connected to them.
Binance's Bank Partner Stop Processing Transfer and Withdrawals
According to a published article in Coindesk, Binance's US partner Silvergate Bank said in mid-June that it will no longer handle US dollar deposits and withdrawals for the company. Though Binance provides the option to buy digital currencies using local money, a feature known as fiat on-ramp in the industry.
Furthermore, people who purchase them should be prepared to lose all of their money, according to Bank of England governor Andrew Bailey.
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