Crypto Exchange Binance Restricted From Operating In UK
Regulators in the UK have warned that Binance, the popular crypto exchange, isn’t allowed to legally operate in the country, shortly after regulators in Japan did the same. The warning came from the country’s Financial Conduct Authority (FCA) which contests that Binance isn’t permitted to undertake any regulated activities in the country.
- According to the FCA’s statement, Binance is offering UK users trading services via its Binance.com website despite not being permitted to undertake any regulated activities in the country without the agency’s approval.
- The FCA said that no entity as part of the wider Binance Group holds any form of authorisation, registration or licence to conduct business in the country. This implies that Binance is operating in a regulatory grey area there, with users bearing all the risk if anything goes wrong.
- On Friday, a day before the UK’s FCA issued its warning, a similar agency in Japan issued the same warning. The country’s Financial Services Agency (FSA) said Binance is not registered to do business in Japan.
- As it issued its warning, the UK has ordered Binance to stop undertaking any regulated activity in the country. As it is, normal (spot) crypto trading isn’t classified as a regulated activity in the UK but certain trading products related to them, such as options and futures trading, are regulated.
- But, since Binance pulled out its application for the UK FCA’s crypto-assets register, it won’t be able to offer unregulated services — such as spot trading — in the country either. The company has been ordered to stop activities in the UK by the 30th of June.
- Binance, the biggest crypto exchange globally, isn’t new to regulatory hurdles at all. It’s faced that in many countries and weathered through some of them.
- With the UK government’s boot, it’s uncertain if Binance will maneuver through this one by registering with the appropriate authorities.
- As a company, Binance Group is headquartered in Malta, a country with friendlier, less strict regulations towards the crypto space.
Update: We changed the headline from “Binance Banned From Operating In UK” to “Binance Restricted From Operating In UK” because our further findings indicate that Binance has not been fully banned from operating in the country.