One of the largest cryptocurrency exchanges in the entire world Binance has recently received a new order from a regulatory authority in the United Kingdom. The reports reveal that Binance has received orders from the regulatory authorities in the United Kingdom to halt any regulated activities.
The decision for putting a halt on regulated activities on the exchange was made by the Financial Conduct Authority after a review of the exchange’s operations. The Financial Conduct Authority is now the supervisory authority that is responsible for looking after the AML regulatory compliance of cryptocurrency-related firms.
Following the new order issued by the regulator, Binance Markets Limited has been barred from carrying out any regulated activities in the United Kingdom. The information has been confirmed by the Financial Conduct Authority during any announcement.
Furthermore, the Financial Conduct Authority has also intimated that no other entity within the Binance Group is allowed to operate in the country. The reason behind that is because none of the entities have the necessary permits within the Binance Group to do such a thing.
Apart from issuing an order to Binance, the Financial Conduct Authority has also issued a warning for the investors. The exchange has reminded the local investors not to make any investments or get involved in any investment activities with Binance.
The regulatory authority has explained that for now, Binance is not authorized to get involved in regulated services in the United Kingdom. Therefore, it is advised to all investors not to invest in Binance or any other cryptocurrency platform that is not authorized to operate in the country.
The regulatory authority has also reminded local investors that there will be no efforts made to retrieve the funds in case something goes wrong during trades through such firms.
Furthermore, there will be no compensation in case fraudulent activity or scam takes place, and the investors find themselves deprived of their investment funds.
The regulatory authority has clarified that it does not regulate cryptocurrencies such as Ether (ETH) or Bitcoin (BTC). However, the mandate practices governance over the trading of derivatives. The trading derivatives include futures options and contracts. However, the digital assets that are considered securities are also governed by the Financial Conduct Authority.
In response to the Financial Conduct Authority’s orders, Binance has provided clarity around its corporate structure. It has clarified that Binance Markets Ltd. is a separate entity that has a legal status. Binance Markets Ltd. does not provide the utility of services or any products through the website; Binance.com.
Binance provided clarity on the matter through its official Twitter page and asked its UK customers/clients not to worry at all. It clarified that the Financial Conduct Authority of the United Kingdom has no impact on the services that Binance provides through its website.