The FCA, the agency that oversees the financial markets in the UK, has issued a ban on Binance Markets Limited.
The document published on the FCA’s official website explicitly states:
“Binance Markets Limited is not permitted to undertake any regulated activity in the UK. This firm is part of a wider Group (Binance Group)”.
The FCA then specifies that Binance Markets Limited is not currently authorized to undertake any regulated activity without the prior written consent of the FCA, due to FCA requirements.
Indeed, the FCA also specifies that no other entity within the Binance Group holds any authorization, registration or licence to operate in the UK, and appears to offer UK customers a range of products and services via the Binance.com website.
In addition, according to this document, most of the companies that advertise and sell cryptocurrency investments in the UK are not licensed by the FCA, implying that Britons investing on these platforms do not have access to the Financial Ombudsman Service or the Financial Services Compensation Scheme, in case of problems.
UK ban on Binance
However, the ban only affects Binance Markets Limited (BML), and only the UK, so Binance has since made it known that BML is a separate legal entity and does not offer products or services through the Binance.com website.
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 https://t.co/QILSkzx7ac website. (1/4)
— Binance (@binance) June 27, 2021
Rather, BML was only acquired by the Binance group in May last year, and has not even started operations in the UK yet.
So they state:
“The FCA UK notice has no direct impact on the services provided on Binance.com.
Our relationship with our users has not changed”.
In other words, Binance has not been banned in the UK, and UK users will be able to continue using it.
They simply will not be able to use the services that Binance Markets Limited (BML) will provide.
This is also not the first problem Binance has had with regulators. In July of last year, the Brazilian CVM explicitly stated that the public offering of Bitcoin Future was irregular in Brazil, and this statement was later echoed by other regulatory agencies around the world.
However, the issue of regulating futures trading on Binance was later resolved, and had no real impact on the platform’s operations.
In this other case, too, it is possible that the story will end in a similar way.