World’s largest digital currency exchange, Binance has been issued a warning by the UK’s monetary regulator. The Financial Conduct Authority (FCA) has directed that the corporation cannot conduct any “regulated activity” in the UK.
It further alerted people to be cautious of adverts guaranteeing high profits on crypto-asset funds. Binance stated that the FCA notice would have no “direct impact” on the assistance it provides from its website 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 of the firm said.
Binance is known to be the world’s largest crypto exchange by dealing volumes, was set to roll out its digital asset marketplace in the UK. However, it was one of many crypto companies that withdrew applications to register with the FCA due to not matching anti-money laundering specifications.
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. (4/4)
— Binance (@binance) June 27, 2021
Presently, Binance Group is located in the Cayman Islands, while Binance Markets Limited is an associate company based in London. The firm has various entities dotted throughout the world and Binance Group was earlier based in Malta.
According to the FCA, Binance Markets Limited (BML), which is owned by Binance Group, is not presently authorized to engage in any regulated activities without the earlier written permission of the FCA. It has until Wednesday to comply with the ruling.
Moreover, the regulator also emphasized that no entity in the Binance Group contains any form of support, enrollment, or license to manage a regulated activity in the UK.
Although, the FCA is conveying a robust sign that it is concerned about the hazards of spending in cryptocurrencies in general. The reason it needs them all to enroll is that it’s worried about their possible use as a camouflage for illicit activity – and it desires customers to be very careful indeed.