Britain’s Financial Regulator Issues Consumer Warning to Binance

  • The FCA said Binance Markets Limited is not permitted to undertake any “regulated activities” in the U.K.
  • However, Binance will most likely be able to continue operating in the country as it’s registered outside of the U.K.
Binance CEO Changpeng Zhao

Binance CEO Changpeng Zhao speaking at an “Ask Us Anything” conference. Binance

According to a notice published on June 26, Binance Markets Limited, a subsidiary of Binance Group, is not permitted to undertake any regulated activities in the U.K. without the prior written consent of the FCA. No entity in the wider Binance Group holds any form of U.K. authorization, registration, or license, the regulator said in the notice. 

By 30 June, Binance must add a notice on a prominent place on its website and mobile apps showing U.K. customers that it’s not permitted to undertake any regulated activities in the country. 

However, the ban will have very little effect on Binance’s business in the country. A spokesperson for the FCA told CNBC that the scope of the ban was limited as companies that aren’t registered in the U.K. can still interact with U.K. customers. Furthermore, the FCA only regulates cryptocurrency derivatives such as futures and options, and not cryptocurrencies themselves. 

Providing access to cryptocurrencies is not a regulated activity, which means customers will still be able to purchase and trade cryptocurrencies in the U.K through Binance, which is registered in the Cayman Islands.

Related Coverage
CAKE Jumps in Price Following Binance Labs’ Investment
  • While far from its all-time high of $43.96, the price of CAKE did jump by 7% following Binance Labs’ investment, and is now traded for around $4.7.
  • As the largest dapp on BNB Chain, PancakeSwap has been leading the development and adoption of the blockchain, which is one of the reasons behind the investment.
June 6, 2022, 3:56 PM
Illustration of business man jumping on uptrend price chart


Binance’s VC Arm Raises $500M to Fund Web3 and Crypto Adoption
  • The fund is the first in Binance Labs’ history to be created with outside capital, namely from DST Global Partners, Breyer Capital, unnamed private equity funds, and others.
  • The new $500 million fund will invest in cryptocurrency companies in three stages of development, from incubation, to early-stage venture, and finally late-stage growth.
Binance Blocks Accounts of Relatives of Russian Government Officials
  • The accounts of Elizaveta Peskova, daughter of spokesman Dmitry Peskov, Polina Kovaleva, stepdaughter of Sergei Lavrov, and Kirill Malofeev, son of oligarch Konstantin Malofeev, have already been closed.
  • Last week the exchange had also implemented new stricter rules for Russian users with crypto holdings of more than €10,000, following the latest sanctions on Moscow from the E.U.