Binance has issued a clarification after the UK Financial Conduct Authority [FCA] warned the cryptocurrency exchange and prohibiting it from carrying out crypto-related activities. This was enough to stir the market which has been facing regulatory clampdowns in certain parts of the world.
While explaining that Binance Market Limited [BML] is a separate legal entity, the exchange, responded in a series of tweets confirming that it does not offer any products or services via the Binance.com website.
The Binance Group had previously announced the acquisition of BML back in May 2020. Till now, the platform has not yet rolled out its business in the UK nor has it used the FCA regulatory permissions. In short, BML is not operational yet.
Binance maintains that nothing has changed
The CZ-led crypto exchange also clarified that the latest notice by the regulatory watchdogs of the country essentially “has no direct impact on the services provided on Binance.com further adding that its relationship with the users of the region has not changed. Its tweet read,
“We take a collaborative approach in working with regulators and we take our compliance obligations very seriously. We are actively keeping abreast of changing policies, rules, and laws in this new space.”
The official press release had earlier stated that, due to the imposition of requirements by the regulatory entity, Binance Markets Limited [BML] is not currently allowed to engage in any regulated activities without the prior written consent of the FCA. However, the FCA has admitted that the restrictions were applicable to only the derivative products, and identified that spot trading of digital assets is outside its regulatory purview.
Furthermore, FCA’s notice does not prohibit the platform’s clients from using the platform, however, it should be noted that the UK authorities are under no obligation to protect them in the event of an eventuality.
The latest news comes in the backdrop of intensifying scrutiny against Binance among the regulatory entities especially in countries like Canada and Japan. Despite a slew of negative back-to-back news regarding the cryptocurrency exchange, Bitcoin and the altcoin market have not felt the FUD episodes.