FCA Ordered Binance to Stop Regulated Activities in Great Britain
The National Financial Conduct Authority (FCA) ordered one of the world’s largest cryptocurrency exchanges, Binance, to cease all regulated activities in the UK after conducting an audit.
The FCA said that Binance Markets Limited is not authorized to conduct regulated activities in the UK as no entity in the Binance group has the necessary permits to operate in the country.
The organization also called on to refrain from investing through unauthorized exchanges, warning that in case of the unsuccessful investment in certain crypto assets, people will not have access to the Financial Ombudsman Service or the financial services compensation scheme.
The FCA does not regulate Bitcoin or Ethereum, but its mandate includes derivatives trading, especially futures and options. Also, digital assets, which are considered securities, fall under the jurisdiction of the FCA.
Binance responded on Twitter to the FCA post by stating that Binance Markets Ltd. is a separate legal entity and does not offer any products or services through the Binance.com website. And the FCA UK notice does not directly affect the services provided on http://Binance.com.
Great Britain is interested in creating a national cryptocurrency. Their government has announced that the new working group will research the possibility of issuing a “britcoin” CBDC. The Treasury and the Bank of England will work on it together. Тhey believe that the digital version of their national currency will help eliminate the unnecessary participation of the third parties in financial operations.