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Financial watchdog bans crypto exchange Binance from UK

The watchdog said that Binance cannot undertake any regulated activities without the prior written consent of the FCA

Sean Russell
Sunday 27 June 2021 12:39 EDT
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The move suggests a crackdown on the cryptocurrency industry
The move suggests a crackdown on the cryptocurrency industry (Getty Images)

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Britain’s Financial Conduct Authority (FCA) has stated that Binance, one of the world’s largest cryptocurrency exchanges, is not permitted to undertake any regulated activity in the UK.

The watchdog said in a statement that Binance, which is part of the wider Binance Group, cannot undertake any regulated activities without the prior written consent of the FCA.

“The Binance Group appear to be offering UK customers a range of products and services via a website, Binance.com,” the FCA statement says.

“No other entity in the Binance Group holds any form of UK authorisation, registration or licence to conduct regulated activity in the UK,” the FCA statement said.

The move suggests a crackdown on the cryptocurrency industry due to concerns of its potential role in illicit activities and comes at a time when Binance has come under scrutiny from regulators in other countries including the United States and Germany.

Bloomberg reported last month that the US Justice Department and Internal Revenue Service, who probe money laundering and tax offences, were seeking information from those who may have an insight into the business.

Meanwhile, the German financial regulator, BaFin, also warned in April that the exchange risked being fined for offering digital tokes without an investor prospectus.

Binance has previously stated that it “takes its compliance obligations very seriously and is committed to following local regulator requirements wherever we operate.”

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