The UK Financial Conduct Authority (FCA) has banned Binance's UK subsidiary from any regulated activity without prior written approval from the regulator.
In the warning, the regulator noted that Binance Markets Limited is part of the Binance Group.
As reported by the FCA, Binance Markets Limited and Binance Group are not licensed to conduct regulated activities in the UK, however, they offer a number of services to UK residents. While cryptos are not regulated by the FCA, crypto-based products such as futures and options are subject to its jurisdiction. The regulator writes:
"Be wary of adverts online and on social media promising high returns on investments in crypto asset or crypto asset-related products. While we don’t regulate crypto assets like Bitcoin or Ether, we do regulate certain crypto asset derivatives (such as futures contracts, contracts for difference and options), as well as those crypto assets we would consider ‘securities.’ A firm must be authorized by us to advertise or sell these products in the UK."
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Binance must now remove all regulated services in the UK by next June 30. The FCA has also ordered Binance to publish a notice on its website and social media informing that it is not authorized to provide regulated services. In addition, Binance needs to store the data of all UK customers.
In response to the FCA's warning, Binance has stated:
"We are aware of recent reports about an FCA UK notice in relation to Binance Markets Limited (BML). BML is a separate legal entity and does not offer any products or services via the Binance.com website. We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules and laws in this new space."