UK’s financial regulator has ordered Binance, to stop all regulated activities in the UK and issued a warning to consumers about the platform, one of the world’s largest cryptocurrency exchanges.
Binance which has come under growing scrutiny globally has until Wednesday evening to confirm that it has complied with the UK watchdog’s demand.
The Financial Conduct Authority (FCA) in a notice dated June 25, said Binance Markets Ltd, Binance’s UK entity, “must not, without the prior written consent of the FCA, carry out any regulated activities…with immediate effect”.
The FCA said that by June 30 Binance 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.
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK,” the FCA said, adding, “no other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK.”
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The regulator did not explain why it has taken the measures against Binance. However, the regulator has required that all firms that offer cryptocurrency related services to register and show proof of anti-money laundering rule compliance.
This weekend the FCA warned consumers against both the Cayman Islands- registered Binance Holdings company and the Binance Markets Limited, a London based affiliate.
On June 25, Japan’s regulator said that Binance was operating in the country illegally, according to the notice posted on Japan’s Financial Services Agency website.
Last month, Bloomberg reported that officials from the U.S. Justice Department and Internal Revenue Service who probe money laundering and tax offences had sought information from individuals with insight into Binance’s business.
In April, Germany’s financial regulator BaFin warned the exchange risked being fined for offering digital tokens without an investor prospectus.
Ifunanya Ikueze is an Engineer, Safety Professional, Writer, Investor, Entrepreneur and Educator.
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