UK financial watchdog bans crypto exchange Binance

Financial watchdog bans the world's biggest crypto exchange from operating in the UK.

· 1 min read
Binance
Binance

With a handful of UK banks already banning their customers from buying cryptocurrencies from Binance, it was only a matter of time until the FCA took action.

The Financial Conduct Authority (FCA) has ruled that Binance Markets Ltd. cannot conduct any “regulated activity” in the UK.

The FCA also issued a warning to consumers about Binance Markets and all Binance companies.

The UK financial watchdog has given Binance Markets until June 30 to remove all advertising and promotional content targetting UK citizens. The exchange will also have to communicate to clients that they are no longer permitted to operate in the UK.

Binance responded by saying that Binance Markets Ltd., which it acquired in 2020, was not yet using its regulatory permissions and that the FCA’s move would not impact services offered on its Binance.com website.

The UK is not alone in its scrutiny of Binance. Germany, Japan, and Canada have taken similar action. The U.S. Justice Department and Internal Revenue Service are also said to be investigating Binance.

With the ever-increasing concerns over fraud and money laundering claims against the company, the move could well see UK investors run for the exit doors, more so now than ever, as UK banks have also started blocking customers from transferring funds over to the crypto giant.

Also see: What UK banks have banned crypto buying

Despite the warnings, the move will certainly not discourage UK investors from purchasing crypto, far from it. Instead, they will simply jump ship.

Uphold, another crypto exchange based in Silicon Valley says it has had an influx of UK users signing up. New registrations have increased 500% in the last 12 months, with an average of 15,000 new customers per month.