Is Binance banned in the UK?
The Financial Conduct Authority (FCA) has issued a statement restricting Binance from carrying out any regulated activities in the UK without the prior written consent of the FCA. Sounds like Binance has been banned, doesn’t it? Let’s dive a little deeper and figure out what is happening.
Binance UK, not Binance Group
In its consumer warning, the regulator said Binance Markets Limited is part of a wider, Binance Group.
“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK”, says the statement.
According to the statement, The Binance Group is offering UK customers a range of products and services via Binance.com.
More regulation, not an outright ban
The FCA has imposed a number of restrictions for the company to comply with by close of business on 30th June 2021:
- display, in a prominent place on the website and any other communication channels, an activities restriction notice;
- remove, or where this is not practicable, give instructions for the removal of any advertising and financial promotions it currently has live;
- provide written confirmation of the steps it has taken to meet the requirements;
- Binance Markets Limited must secure and preserve all records and/or information (physical or electronic) relating to all UK consumers from its systems in their original form, or in a copy proved to be identical to the material source, at a location within the United Kingdom. The company must notify the FCA in writing by 2nd July 2021, such that the records can be provided to the FCA promptly on its request.
Earlier in June, FSA, the Japanese financial regulator also warned Binance for operating without registration.
So, not banned, but cracked down on. This follows a new trend in the UK of shunning existing crypto in preparation for the central bank digital currency (CBDB), dubbed ‘Britcoin’. The country is gearing up towards this on all fronts, from the FCA to the Bank of England.
Graduated from a well-known business school and I am interested in new market trends that fall into area of expertise. I love to tell you all about artificial intelligence, the blockchain and crypto.