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The UK’s finance minister has ordered Binance to suspend all operations in Britain and impose stricter rules on the serious criticism of one of the world’s most advanced electronic media.
The recent financial intervention by the Financial Conduct Authority is one of the biggest actions the global regulator has taken against Binance, the largest digital company with corporations around the world. The exchange has been held until Wednesday evening to ensure it has complied with the supervisor’s requirements.
The intervention is an indication of how regulators are leveraging the cryptocurrency market in relation to potential risks such as money laundering and fraud, as well as consumer protection.
The FCA has also this week issued a warning to consumers against all those registered in the Cayman Islands and Binance Markets Limited, based in London under the supervision of Changpeng Zhao and under the supervision of a UK regulator.
“Binance Markets Limited is not permitted to carry out any legitimate activities in the UK,” the FCA said, adding, “no other entity in the Binance Group has the right, registration or authorization for the UK to operate in the UK.”
The group did not immediately respond to FT’s request for comment, but said it was “monitoring its compliance very closely and is committed to complying with the requirements of local authorities wherever we operate”.
Binance Markets Limited is not authorized by the FCA government to register cryptocurrency funds, which require UK companies to provide digital tools.
The agency applied for a cryptocurrency registration company with a regulator, but withdrew the request last month according to two people who are aware of this. The supervisor confirmed that the request had been removed “in accordance with the FCA’s actions”.
The purpose of the FCA in deciding whether to approve or not is to identify system reviews and measures to prevent money laundering and to support terrorism.
Binance is one of the key players in the fast-growing, fast-growing crypto market various customer support around the world, including the sale of several silver coins, futures, options, stock exchanges, and savings and loan accounts. It recorded a crypto trade volume equivalent to $ 1.5tn last month, according to TheBlockCrypto.
As part of what the FCA did, the regulators asked Binance to show up next Wednesday on his page, “BINANCE MARKETS LIMITED IS NOT FAILING TO USE ANY CONTROLLED ACTION IN THE UK.” Binance Markets Limited must also “protect and maintain all records and / or information. Relating to UK consumers from its systems” and prohibit any advertising and economic promotions.
Binance Markets Limited was established last year as a joint venture with the rest of the team to set up an exchange from the UK, Binance UK, which would be a “barrier” to global operations, according to government documents and the two people are aware of the matter. Although the FCA banned Binance from providing employment in the UK, British citizens can still find Binance jobs in other countries.
Binance Markets Limited based in London had a license from the FCA to provide consumers with financial services in traditional funds, which Binance achieved by purchasing a financial company that was already registered with the supervisor. The deal was approved by the FCA last June, according to government documents.
The FCA’s decision came after the Japan Services Financial Agency warned last week that Binance was conducting illegal trade with Japanese citizens. This is the second time the FSA has warned of Binance after releasing the relevant notice in 2018.
German financial authorities have warned investors in April that Binance may have violated security rules by setting up trading in stock exchanges, which the exchange tried to fail appeal against.
Writers can be reached by email at adam.samson@ft.com philip.stafford@ft.com or Telegraph at @adamsamsonFT @staffordphilip
Additional Robin Harding reports in Tokyo
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