The world’s largest cryptocurrency exchange Binance is facing a massive crackdown amidst market-wide beating. In the latest development, the UK Financial Conduct Authority [FCA] has released a statement wherein it revealed that Binance Markets Limited is not permitted to undertake any regulated activity in the country.
FCA further went on to comment that no other entity coming from Binance Group currently holds any particular class of authorization, license to carry out authority, or a registration in the country.
The official press release, stated,
“This firm is part of a wider Group [Binance Group]. Due to the imposition of requirements by the FCA, Binance Markets Limited is not currently permitted to undertake any regulated activities without the prior written consent of the FCA. No other entity in the Binance Group holds any form of UK authorization, registration or license to conduct regulated activity in the UK.”
FCA has reportedly identified myriad companies that are advertising and even selling investments when it comes to crypto-assets but do not have authorization from the regulatory watchdog. It warned the users against engaging or investing in a type of crypto-asset via those platforms, and said that they will not be able to access the Financial Ombudsman Service, or even the Financial Services Compensation Scheme if something goes wrong.
Trouble Brewing for Binance
This is not the first time that the cryptocurrency exchange has been under intense scrutiny from regulatory entities. In fact, the latest news comes on the tails of fresh statements issued by financial regulators in Japan and Canada that echoed a similar sentiment. Reiterating its 2018 stance, Japan’s Financial Services Agency [FSA] issued a warning this week in which it stated that the CZ-led exchange is not registered to do business in the country.
Soon after this, Binance announced terminate operations to Ontario-based users, claiming it to be a “restricted jurisdiction.” In an official statement, the exchange advised the users of the region to take immediate measures to close out all active positions by the 31st of December, 2021.