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 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.
- The popular crypto exchange has decided to sell its business in Russia to CommEX, a crypto exchange business that was officially launched on Tuesday.
- Binance noted that it will fully exit the Russian market, and have no ongoing revenue split or any option to buy back shares in the business.
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- The company said it will be suspending its crypto-backed debit card service in the Middle East on 25 August, and in Latin America by 21 September.
- Although no reason was given for the decision, the company noted that “less than 1% of users” in those regions will be affected by the change.
- A spokesperson said the change was due to the “changing market and user needs”, and that Binance will now be refocusing its resources on its main products and long-term goals.
- Launched in March 2022, Binance Connect helped crypto businesses connect with the traditional finance system, and supported 50 cryptocurrencies and networks such as Visa and Mastercard.