World's largest Cryptocurrency Binance stands on shaky waters

• Image Credit: Internet

• Jun 28, 2021 | moderator

Britain's financial regulator has said Binance, one of the world's largest cryptocurrency exchanges, cannot conduct any regulated activity and issued a warning to consumers about the platform. In a notice, the Financial Conduct Authority (FCA) said Binance Markets Ltd, Binance's only regulated UK entity, "must not, without the prior written consent of the FCA, carry out any regulated activities… with immediate effect".

Binance said in a statement that Binance Markets, which it acquired in 2020, was not yet using its regulatory permissions, and that the FCA's move would not impact services offered on its Binance.com, "We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules, and laws in this new space," a spokesperson said.

Binance announced in June last year that it had bought an FCA-regulated entity and would use it to offer cryptocurrency trading services using pounds and euros.

The FCA has told Binance that by June 30 it must display a notice stating "Binance Markets Limited is not permitted to undertake any regulated activity in the UK” on its website and social media channels.

It must also secure and preserve all records relating to UK consumers and inform the FCA this has been done by July 2. The regulator did not explain why it had taken these measures. British citizens will still be able to access Binance's services in other jurisdictions.