UK financial watchdog orders Binance to halt regulated activity

Binance has been ordered to cease all regulated activities in the United Kingdom following a review of its operations by the nation’s Financial Conduct Authority (FCA).

UK financial watchdog orders Binance to halt regulated activity

Binance has been ordered to cease all regulated activities in the United Kingdom following a review of its operations by the nation’s Financial Conduct Authority (FCA).

The FCA said, “Binance Markets Limited is not permitted to undertake any regulated activity in the UK,” in an announcement adding that no other entity in the Binance Group holds any of the necessary permits to operate in the country.

The FCA also issued a stern warning about investing with unauthorized exchanges stating:

“Most firms advertising and selling investments in crypto assets are not authorised by the FCA. This means that if you invest in certain crypto assets you will not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme if things go wrong.”

While the FCA doesn’t regulate cryptocurrencies like Bitcoin or Ether, its mandate governs derivatives trading, which includes futures contracts and options. Digital assets that are deemed to be securities also fall under the financial authority’s sight.

Binance clarified its corporate structure in a response to the FCA on Sunday stating Binance Markets Ltd. is a separate legal entity and does not offer any products or services via the Binance.com website.

The FCA’s decision came just one day after the exchange announced it would be exiting another major market. Binance users in the Canadian province of Ontario have a deadline of the end of the year to close out all open positions.

On Friday, the exchange informed its users that Ontario has become a restricted jurisdiction without specifying a reason for its withdrawal. However, a sweeping crackdown on crypto exchanges by the Ontario Securities Commission likely played a major role in the decision.

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