UK FCA bans Binance Cryptocurrency exchange app

Britain’s financial regulator has said Binance, one of the world’s largest cryptocurrency exchanges, can no longer carry out any regulated operations in the country.

“Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA,” a statement on UK’s Financial Conduct Authority (FCA) website said.

“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.”

FCA also issued a consumer warning about Binance.com, advising people to be wary of adverts promising high returns on crypto asset investments.

The regulatory body said most firms advertising and selling investments in cryptoassets are not authorised and warned consumers from investing in them.

“You invest in certain cryptoassets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong,” FCA said.

“While we don’t regulate cryptoassets like Bitcoin or Ether, we do regulate certain cryptoasset derivatives (such as futures contracts, contracts for difference and options), as well as those cryptoassets we would consider ‘securities’ – find out more information.”

FCA said a firm must be authorised to adverstise and sell products in the UK and asked consumers to check its register to make sure the firm is authorised.

“You can also check our Warning List of firms to avoid,” FCA said.

Binance.com is an online centralised exchange that offers users a range of financial products and services, including purchasing and trading a wide range of digital currencies, as well as digital wallets, futures, securities, savings accounts and even lending.

Binance Group is currently based in the Cayman Islands, while Binance Markets Limited is an affiliate firm based in London. The firm has multiple entities dotted around the world and Binance Group was previously based in Malta.

Trading of cryptocurrencies is not directly regulated in Britain, services such as trading in cryptocurrency requires authorisation by the FCA.