- The Financial Conduct Authority (FCA) has directed Binance to terminate all regulated operations in UK
- The decision comes due to the absence of authorisation held by the crypto exchange platform
- Consumer warnings have also been issued by the regulating body
No Authorisation Held By Binance Group in UK
Britain’s Financial Conduct Authority (FCA) has ordered cryptocurrency exchange platform Binance to forestall all regulated operations within the country. The justification behind such strict measures comes from the lack of authorization held by the company. As per the statement made by the financial regulator on Saturday, the platform can no longer be allowed to adopt any regulated functions without the prior written consent of the FCA.
The report also highlighted that no entity within the Binance Group holds any form of UK authorization, registration or license to pursue any regulated operations in the country. These orders come in the wake of Binance facing scrutiny from regulators belonging to other countries like Germany and the United States.
Cryptocurrency Exchange Platform Faces Strict Inspection
Binance is one of the largest cryptocurrency exchange platforms with the highest trading volumes. However, the platform is being monitored by various financial and legal bodies. According to a report published by Bloomberg in May, officials from the United States Department of Justice as well as the Internal Revenue Service (IRS) sought records from people with possible insights into the company’s businesses. These authorities are well known for dealing with matters related to tax evasion and money laundering.
Germany’s monetary regulator BaFin has also issued warnings to the platform regarding the provision of virtual tokens without an investor prospectus. Binance could possibly face a hefty fine if the company did not comply with the requirements of the Federal Financial Supervisory Authority.