FLASH: UK bans Binance - The Naija Weekly

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Sunday, June 27, 2021

FLASH: UK bans Binance


The United Kingdom’s financial regulatory body, the Financial Conduct Authority (FCA) has said that Binance, one of the world’s largest cryptocurrency trading platforms, can no longer carry out any regulated operations in the country, sending out warnings to consumers.

In a notice dated June 25, FCA said Binance Markets Ltd, Binance’s only regulated UK entity, “must not, without the prior written consent of the FCA, carry out any regulated activities… with immediate effect.”

The FCA has told Binance that by June 30 it 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.

It must also secure and preserve all records relating to UK consumers and inform the FCA this has been done by July 2.

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

The FCA is carrying out its oversight powers over cryptocurrency trade as bodies and regulatory powers address concerns relating to its potential role in aiding money laundering and fraud.

In January, the FCA put out a requirement for all firms offering cryptocurrency-related services to register and show they comply with anti-money laundering rules. However earlier this month it said that only five firms had registered with it.

As of May 12, another 90 have temporary registration, allowing them to continue trading while their applications are assessed. The FCA noted that this status did not mean the registered bodies were “fit and proper.”

Binance has garnered global scrutiny over the past couple of months. In June, Japan said that the crypto trading platform was operating in the country illegally. This announcement was made on Japan’s Financial Services Agency website.

In May, Peoples Gazette reported that the trading platform came under investigation by officials from the U.S. Justice Department and Internal Revenue Service, who probe for money laundering and tax offences.

In April, Reuters reported that Germany’s financial regulator BaFin said the exchange risked being fined for offering digital tokens without an investor prospectus.

People's Gazette

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